Setco Automotive Subsidiary Approves Waiver of ₹125.10 Crore Investor IRR
Setco Auto Systems Private Limited, a subsidiary of Setco Automotive Limited, has approved waivers on its unlisted NCDs. This includes waiving ₹67.0 lakh in Additional Redemption Premium for FY26 and ₹125.10 crore in accrued Investor IRR for FY25-26. These waivers are subject to debenture redemption and have been agreed upon by debenture holders.
The waiver of ₹125.10 crore in Investor IRR and ₹67.0 lakh in Additional Redemption Premium represents a substantial financial relief for the subsidiary, which could positively impact Setco Automotive's consolidated financial performance. However, the impact is medium as it relates to waivers on existing debt rather than new business generation.
The waiver of significant amounts in Additional Redemption Premium and Investor IRR by the subsidiary is positive as it reduces the company's financial obligations and potentially improves its financial health.
Setco Auto Systems Private Limited (“SASPL”), a material subsidiary of Setco Automotive Limited, has approved significant waivers related to its unlisted Non-Convertible Debentures (NCDs).
The Board of SASPL has approved the waiver of accrued Additional Redemption Premium for the Financial Year 2025–26, aggregating to ₹67.0 lakh. This waiver is contingent upon the redemption of the Debentures within the stipulated timeline. Specifically, ₹15.6 lakh was payable to India Resurgence Fund – Scheme 1, and ₹51.4 lakh to India Resurgence Fund – Scheme 2.
Furthermore, SASPL has approved the waiver of accrued Investor Internal Rate of Return (IRR) at 18% per annum on the unlisted NCDs. This waiver amounts to ₹4.7 crore for FY 2024–25 (Scheme 1) and ₹15.4 crore for FY 2024–25 (Scheme 2). For FY 2025–26, the waiver is ₹24.45 crore for Scheme 1 and ₹80.55 crore for Scheme 2. The total waiver of accrued Investor IRR for FY 2024–25 and FY 2025–26 aggregates to ₹125.10 crore.
These waivers have been agreed upon by the relevant debenture holders and, where applicable, consented to by the debenture trustee, in accordance with the terms of the Debenture Trust Deed and other transaction documents. The principal amount and other key terms of the Debentures remain unchanged, except for the aforementioned waivers. This disclosure is made for information and record purposes.
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Setco Automotive Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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