Description
BSE announces revised terms for debt securities (ISIN: INE04AP07016) of Sadbhav Gadag Highway Private Limited, including changes to interest rate structure, tenure extension to July 2029, and updated redemption schedule.
Summary
BSE has announced revised terms for the debt securities of Sadbhav Gadag Highway Private Limited (SGHPL) with ISIN INE04AP07016. The revision involves a restructured interest rate (splitting into cash and accrued components), an extension of the maturity date from October 31, 2028 to July 28, 2029, and a completely revised redemption schedule. Security and charge terms have also been updated.
Key Points
- ISIN: INE04AP07016
- Interest rate restructured into a cash-pay portion and an accrued-monthly portion payable at maturity
- Tenure extended from October 31, 2028 to July 28, 2029
- Redemption schedule revised with new instalment dates and percentages
- Security package revised: first-ranking hypothecation over Issuer assets and 74% share pledge by SEL retained; personal guarantee of promoter Mr. Shashin Patel added
Regulatory Changes
Rate of Interest – Existing Terms:
- 13% p.a. payable semi-annually (till May 31, 2026)
- 20% p.a. payable semi-annually (thereafter)
Rate of Interest – Revised Terms:
- Till May 31, 2026: 10% p.a. payable semi-annually + 3% p.a. accrued monthly and payable on maturity
- W.e.f. June 01, 2026: 14.5% p.a. payable semi-annually, split as 10% cash pay semi-annually + 4.5% accrued monthly and payable on maturity
Tenure:
- Existing: October 31, 2028
- Revised: July 28, 2029
Compliance Requirements
- Bondholders and trustees should note the revised terms for ISIN INE04AP07016
- Trustees must ensure updated security documentation reflecting the revised charge structure and addition of the personal guarantee
- Market participants should update records to reflect the revised redemption schedule and maturity date
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% |
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% |
- Interest rate change effective: June 01, 2026
- New maturity date: July 28, 2029
Impact Assessment
The restructuring of SGHPL’s debt securities has significant implications for existing bondholders. The conversion of a portion of interest from cash-pay to accrued (PIK-like) reduces near-term cash outflows for the issuer but defers returns for investors. The tenure extension of approximately nine months further delays full repayment. The addition of a personal guarantee from promoter Mr. Shashin Patel provides an incremental credit enhancement. Overall, this represents a material modification to the terms of the instrument, indicating potential stress at the issuer level, and holders should reassess credit risk and cash flow projections accordingly.
Impact Justification
Significant restructuring of debt security terms including interest rate changes, tenure extension by ~9 months, and revised redemption schedule affecting bondholders of Sadbhav Gadag Highway Private Limited.