Description
BSE notifies revision to terms of debt securities (ISIN: INE04AP07016) issued by Sadbhav Gadag Highway Private Limited, including changes to interest rate structure, tenure extension, and revised redemption schedule.
Summary
BSE has notified a material revision to the terms of debt securities issued by Sadbhav Gadag Highway Private Limited (SGHPL) under ISIN INE04AP07016. The revision encompasses changes to the interest rate structure, an extension of the maturity date, and a restructured redemption schedule. The security and charge details have also been updated.
Key Points
- ISIN affected: INE04AP07016 (Sadbhav Gadag Highway Private Limited)
- Interest rate structure revised in two phases — before and after June 1, 2026
- Maturity extended from October 31, 2028 to July 28, 2029
- Redemption schedule completely restructured with new dates and percentages
- Security/charge structure updated with revised hypothecation and pledge terms
- Personal guarantee of promoter (Mr. Shashin Patel) added to revised terms
Regulatory Changes
Interest Rate — Existing Terms:
- 13% p.a. payable semi-annually until May 31, 2026
- 20% p.a. payable semi-annually thereafter
Interest Rate — Revised Terms:
- Till May 31, 2026: 10% p.a. payable semi-annually + 3% accrued monthly, payable on maturity
- W.e.f. June 1, 2026: 14.5% p.a. (10% payable semi-annually + 4.5% accrued monthly, payable on maturity)
Tenure:
- Existing: October 31, 2028
- Revised: July 28, 2029
Compliance Requirements
- Debenture trustees and registrars must update records to reflect revised interest rate, accrual mechanism, and maturity date
- Debtholders should note the change from a uniform semi-annual payment to a split structure with a deferred accrual component
- Updated security/charge documentation must reflect the revised hypothecation and personal guarantee terms
Important Dates
Revised Redemption Schedule:
| 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% |
- Interest rate phase change effective: June 1, 2026
- Revised maturity date: July 28, 2029
Impact Assessment
This restructuring represents a significant modification to the debt instrument. The extension of tenure by approximately nine months and the split interest rate mechanism (cash pay + accrual) suggest a liquidity-driven restructuring for SGHPL, an infrastructure/highway entity. Existing debtholders will receive a lower immediate cash interest (10% vs 13%/20%) with the remaining interest deferred to maturity, increasing credit risk exposure over a longer period. The addition of a personal guarantee from promoter Mr. Shashin Patel provides incremental security. The revised charge structure introduces a first-ranking hypothecation over issuer assets and pledge of 74% SGHPL shares by SEL, partially replacing the earlier mortgage on Gandhinagar land. Impact is high for existing debtholders of this instrument.
Impact Justification
Significant restructuring of debt security terms including interest rate changes, tenure extension from October 2028 to July 2029, and a completely revised redemption schedule affecting debtholders of ISIN INE04AP07016.