Vardhman Polytex Ltd has announced a multi-pronged strategy to strengthen its financial position, including issuance of debentures worth INR 600 million and the planned sale of land at its Ludhiana unit. The moves aim to reduce debt, unlock value, and support future growth initiatives.
The Ludhiana-based textile company, part of the Oswal Group, disclosed the outcome of its March 19, 2026 board meeting. The decisions reflect a mix of fundraising through debt instruments and asset monetization, alongside governance changes requiring shareholder approval.
Issuance Of Debentures
The board approved issuance of non-convertible debentures (NCDs) worth INR 350 million on a private placement basis, carrying an 18% annual coupon with monthly payments until March 2031. Additionally, optionally convertible debentures (OCDs) worth INR 250 million will be issued to Special Situation India Fund, with conversion into equity shares possible within 6–15 months.
Alteration Of Articles And EGM
The Articles of Association will be amended to allow appointment of board observers linked to financing arrangements. An Extraordinary General Meeting is scheduled for April 16, 2026 to seek shareholder approval for the OCD issue and AOA changes.
Land Sale At Ludhiana Unit
The company will seek shareholder approval via postal ballot to sell or transfer land at its Ludhiana unit, expected to conclude within six months. Proceeds will be used to repay lenders and fuel growth.
Key Highlights
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Issuance of NCDs worth INR 350 million
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Issuance of OCDs worth INR 250 million to Special Situation India Fund
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EGM scheduled for April 16, 2026
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Postal ballot for Ludhiana land sale within six months
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AOA amendment to allow board observers
Sources: Company filing to NSE and BSE