Description
BSE circular announcing revised terms for debt securities (ISIN: INE04AP07016) of Sadbhav Gadag Highway Private Limited, including changes to interest rate, tenure, and redemption schedule.
Summary
BSE has issued a circular regarding the revision of terms for debt securities of Sadbhav Gadag Highway Private Limited (SGHPL) with ISIN INE04AP07016. The revision covers changes to the interest rate structure, tenure extension, and a new redemption schedule, along with updated security/charge arrangements.
Key Points
- ISIN: INE04AP07016 (Sadbhav Gadag Highway Private Limited)
- Interest rate revised from 13% p.a. (semi-annual) to a split structure: 10% p.a. payable semi-annually + accrued portion payable on maturity
- Tenure extended from 31st October 2028 to 28th July 2029
- Revised redemption schedule with new instalment dates and percentages
- Security and charge arrangements updated with revised hypothecation and pledge terms
- Personal Guarantee of Promoter (Mr. Shashin Patel) added under revised terms
Regulatory Changes
Interest Rate Revision:
- Existing: 13% p.a. payable semi-annually (till May 31, 2026); 14.5% p.a. payable semi-annually (w.e.f. June 1, 2026)
- Revised (till May 31, 2026): 10% p.a. payable semi-annually + 3% accrued monthly, payable on maturity
- Revised (w.e.f. June 1, 2026): 10% p.a. payable semi-annually + 4.5% accrued monthly, payable on maturity
Tenure Revision:
- Existing maturity: 31st October 2028
- Revised maturity: 28th July 2029
Redemption Schedule (Revised):
| Date | Repayment % |
|---|---|
| 31-01-2026 | 3.84% |
| 31-07-2026 | 8.27% |
| 31-01-2027 | 10.34% |
| 31-07-2027 | 12.41% |
| 31-01-2028 | 13.44% |
| 31-07-2028 | 15.51% |
| 31-01-2029 | 16.54% |
| 28-07-2029 | 19.65% |
Existing Redemption Schedule (for reference):
| Date | Repayment % |
|---|---|
| 30-Apr-2026 | 13.10% |
| 31-Oct-2026 | 14.04% |
| 30-Apr-2027 | 14.64% |
| 31-Oct-2027 | 12.61% |
| 30-Apr-2028 | 17.93% |
| 31-Oct-2028 | 27.68% |
Compliance Requirements
- NCD holders and trustees must note the revised terms effective from the dates specified
- Security documentation to be updated to reflect new charge structure including first ranking hypothecation over Issuer Hypothecated Assets
- Pledge documentation updated to reflect 74% share pledge of SGHPL by SEL
- Personal Guarantee of Promoter (Mr. Shashin Patel) to be executed/acknowledged under revised terms
Important Dates
- 31-01-2026: First revised redemption instalment (3.84%) — already effective
- 31-05-2026: End of current interest rate phase (10% + 3% accrual)
- 01-06-2026: New interest rate phase begins (10% + 4.5% accrual)
- 28-07-2029: Final revised maturity date and last redemption instalment (19.65%)
Impact Assessment
The restructuring of SGHPL’s debt securities represents a significant revision to bondholder terms. The extension of tenure by approximately 9 months (from October 2028 to July 2029) and the deferral of a portion of interest (3%-4.5% accrued monthly) to maturity indicates potential liquidity stress at the issuer level. NCD holders will receive lower immediate cash flows due to the accrual component but retain full entitlement at maturity. The addition of a personal guarantee by the promoter and updated hypothecation terms provide some incremental security. This restructuring affects secondary market pricing of these instruments and is relevant to investors holding SGHPL NCDs.
Impact Justification
Significant restructuring of debt security terms including interest rate revision, extended maturity from October 2028 to July 2029, and revised redemption schedule affecting NCD holders.