Heranba Industries Limited to Receive ₹450 Crores in OFCDs from Wholly Owned Subsidiary
On April 27, 2026, Heranba Industries Limited announced a major internal debt restructuring involving its wholly owned subsidiary, Heranba Organics Private Limited (HOPL). The transaction involves HOPL issuing Optionally Fully Convertible Debentures (OFCDs) to the parent company, thereby converting an existing unsecured inter-corporate deposit (ICD).Under the agreed terms, Heranba Organics Private Limited committed to allotting 45,00,00,000 Optionally Fully Convertible Debentures (OFCDs) to Heranba Industries Limited. These debentures carry a face value of ₹10 each and are issued at par. The total value of the transaction amounts to ₹450 Crores.
This conversion directly adjusts and sets off the existing unsecured ICD granted by the parent company to HOPL. The company stated that the transaction is part of an internal debt restructuring and does not involve any fresh cash outflow. Furthermore, the transaction is expected to have no impact on the shareholding or control of Heranba Industries Limited in HOPL, which remains at 100%.
HOPL, which operates in the Agro Chemicals sector, serves as a wholly owned subsidiary of Heranba Industries Limited. The board of directors of Heranba Industries Limited had previously approved the proposal for this conversion during its meeting held on April 27, 2026.
Key details of the involved entities and the transaction are summarized below:
| Metric | Detail |
|---|---|
| Transaction Date | April 27, 2026 |
| Primary Transaction | Conversion of Inter-Corporate Deposits (ICDs) into Optionally Fully Convertible Debentures (OFCDs) |
| Principal Company | Heranba Industries Limited |
| Subsidiary Company | Heranba Organics Private Limited (HOPL) |
| OFCDs Issued | 45,00,00,000 |
| Face Value per OFCD | ₹10 |
| Total Value/Consideration | ₹450 Crores |
| ICD Amount Converted | ₹450.00 Crores |
| HOPL Industry | Agro Chemicals |
The subsidiary, HOPL, which was incorporated on August 29, 2022, maintained a turnover of ₹220.58 Crores in the financial year 2024-25. The company noted that multiple common directors, including Mr. Sadashiv K. Shetty, Mr. Raghuram K. Shetty, Mr. Shriraj S. Shetty, Mr. Raunak R. Shetty, and Mr. Anilkumar M Marlecha, sit on the boards of both Heranba Industries Limited and HOPL.
The conversion of the ICDs into OFCDs is undertaken on an arm's-length basis. The transaction is categorized as a one time event and is expected to be completed upon the allotment of the OFCDs by HOPL.
HERANBA Stock Price Movement
Today, Heranba Industries Limited shares edged higher to close at ₹228.14, gaining 7.10% for the session. The stock traded on a volume of 166,656 shares, hitting a day high of ₹232.68.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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