Description
BSE notifies revision in terms of debt securities (ISIN: INE04AP07016) issued by Sadbhav Gadag Highway Private Limited, including changes to interest rate structure, tenure extension to July 2029, and revised redemption schedule.
Summary
BSE has disclosed revised terms for debt securities issued by Sadbhav Gadag Highway Private Limited (SGHPL) under ISIN INE04AP07016. The restructuring modifies the interest rate structure, extends the maturity date from October 31, 2028 to July 28, 2029, and replaces the existing redemption schedule with a new one effective from January 2026.
Key Points
- ISIN: INE04AP07016
- Interest rate revised in two phases: 10% p.a. paid semi-annually + 3% accrued monthly (till May 31, 2026), then 10% p.a. semi-annually + 4.5% accrued monthly (w.e.f. June 1, 2026)
- Existing rate was a flat 13% p.a. payable semi-annually (till May 2026) and 14.5% p.a. semi-annually (w.e.f. June 2026); accrued portion now deferred to maturity
- Tenure extended from October 31, 2028 to July 28, 2029
- Redemption schedule significantly revised with new instalment dates and percentages
- Security/charge structure updated to include first ranking hypothecation, 74% share pledge by SEL, and personal guarantee of promoter Mr. Shashin Patel
Regulatory Changes
- Revised interest rate structure splits payment into a cash-pay component (10% p.a. semi-annual) and an accrued/PIK component (3% or 4.5% depending on period), with the accrued portion payable at maturity
- Maturity date extended by approximately 9 months
- Security package updated: first ranking hypothecation over issuer assets replaces exclusive charge on fixed/current assets; personal guarantee of promoter added
Compliance Requirements
- Debenture trustees and registrars must update records to reflect revised terms
- Investors/debenture holders should note the revised cash flow schedule and the deferral of a portion of interest to maturity
- Market participants should update pricing models to reflect the new redemption dates and interest structure
Important Dates
| Date | Event |
|---|---|
| May 31, 2026 | End of first interest rate phase (10% + 3% accrued) |
| June 1, 2026 | Start of second interest rate phase (10% + 4.5% accrued) |
| January 31, 2026 | First revised redemption instalment – 3.84% |
| July 31, 2026 | Redemption instalment – 8.27% |
| January 31, 2027 | Redemption instalment – 10.34% |
| July 31, 2027 | Redemption instalment – 12.41% |
| January 31, 2028 | Redemption instalment – 13.44% |
| July 31, 2028 | Redemption instalment – 15.51% |
| January 31, 2029 | Redemption instalment – 16.54% |
| July 28, 2029 | Final maturity – 19.65% (revised from October 31, 2028) |
Previous redemption schedule (superseded):
- Apr 30, 2026: 13.10% | Oct 31, 2026: 14.04% | Apr 30, 2027: 14.64% | Oct 31, 2027: 12.61% | Apr 30, 2028: 17.93% | Oct 31, 2028: 27.68%
Impact Assessment
This restructuring represents a material change in cash flows for debenture holders of SGHPL (ISIN INE04AP07016). The deferral of a portion of interest (3%–4.5% p.a.) to maturity increases credit risk exposure for investors while extending the investment horizon by ~9 months. The revised security package—replacing an exclusive charge with a first-ranking hypothecation and adding a personal promoter guarantee—reflects renegotiated credit terms typical of stressed infrastructure asset restructurings. Investors should reassess yield-to-maturity calculations and credit risk in light of the revised schedule.
Impact Justification
Material restructuring of debt terms including interest rate changes, tenure extension by ~9 months, and a completely revised repayment schedule affecting debenture holders of ISIN INE04AP07016.