Vardhman Polytex Limited Announces Board Decisions Including Fund Raising and Land Sale
Vardhman Polytex Limited announced several key decisions following a board meeting held on March 19, 2026. The company approved a fundraising initiative involving the issuance of debt instruments and outlined plans for a land sale to augment funds for debt repayment and future growth.Fund Raising Initiatives
The board approved the issuance of debt instruments through a private placement. This includes up to INR 35,00,00,000 in listed, secured, rated, redeemable Non-Convertible Debentures (NCDs) and up to INR 25,00,00,000 in unlisted, secured, redeemable, optionally convertible debentures (OCDs). The OCDs are convertible into equity shares at a price to be determined at the time of conversion, and are being offered on a preferential basis to non-promoters.Alteration of Articles of Association
Shareholders will vote on an alteration to the company’s Articles of Association. The proposed change inserts Article 131A, which allows for the appointment of an observer to the Board by the debenture trustees or holders, as per financing documents.Extraordinary General Meeting
An Extraordinary General Meeting (EGM) is scheduled for Thursday, April 16, 2026, at 11:00 A.M. (IST) in Ludhiana to obtain shareholder approval for the preferential issue of OCDs to non-promoters and the alteration of the Articles of Association. A cut-off date of April 9, 2026, has been set to determine eligible voters.Land Sale at Ludhiana Unit
The board gave in-principle approval to sell, transfer, or dispose of land with or without structures at the company's Ludhiana unit, potentially in multiple tranches. This initiative aims to repay outstanding liabilities to lenders and support future growth. The sale requires shareholder approval via postal ballot.As of March 31, 2025, the Ludhiana unit contributed INR 9,514.39 Lakh, or 33.39% of the company’s revenue, and the company’s net worth stood at negative INR 22,739.14 Lakh. The sale is expected to be completed within the next six months, subject to shareholder approval.
Table 1: NCD Issuance Details
| Particulars | Details |
|---|---|
| Type of securities proposed to be issued | INR denominated, listed, senior, secured, rated, redeemable and Non-Convertible Debentures ("NCDs") |
| Total amount to be issued (approximately) | Up to INR 35,00,00,000 |
| Listing | BSE |
| Coupon/ Interest | 18% per annum, monthly until March 2031 |
Table 2: OCD Issuance Details
| Particulars | Details |
|---|---|
| Type of securities proposed to be issued | INR denominated, Secured, Unrated and Unlisted Optionally Convertible Debentures (OCDs) |
| Total amount to be issued (approximately) | Up to INR 25,00,00,000 |
| Conversion | Within 6-15 months from allotment or redemption via bullet repayment at the end of 18 months. |
| Coupon/ Interest | 18.00% per annum compounded annually. |
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