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The transfer is a component of a bigger refinancing plan on the group, individuals near the event stated. Shopping for again the debentures may even help in unlocking worth throughout any potential monetisation of the asset, they stated.
The bonds, bought between 2015 and 2016, are speculated to mature between June this yr and December 2030. Axis Trustee Companies is the debenture trustee.
“The corporate is aiming to redeem bonds/non-convertible debentures early,” one of many individuals informed ET.
“They wish to purchase again bonds at Rs 100 on par,” one other individual stated.
The SP group didn’t remark.
Mutual funds together with ICICI Prudential, Kotak Mutual Fund, SBI Mutual Fund and IIFCL had invested within the bonds, present knowledge collected from Prime Database and ValueReseach. However, as of March 31 this yr, ICICI Prudential remained the one investor amongst mutual funds. The fund home declined to remark.
Different present buyers embody provident funds, insurers and company treasuries.
These bonds are carrying a excessive price of curiosity at 9.15-9.25%. About seven months in the past, ICRA Rankings downgraded the bonds by two notches to AA-minus, citing the corporate mum or dad’s one-time mortgage restructuring train, which in keeping with the rankings firm, “has constrained its capability to increase help to group corporations”.
The particular objective firm goals to deliver down issuances of non-convertible debentures to zero, because the transfer ought to assist the group have a look at different choices to regain fortune, sellers stated.
Nonetheless, the bonds within the secondary market seem illiquid with the papers not altering arms steadily. The final secondary market commerce befell in September final yr for a paltry sum of Rs 3 crore.
Out of the full excellent papers, greater than one-fourth has already been redeemed at Rs 735 crore as of December finish. This yr, two redemptions are speculated to happen, in June and December.
“The proposal of buyback ought to have the stamp of approval from NHAI (Nationwide Highways Authority of India) as it’s an annuity plan,” stated an govt of an organization that has invested within the bonds.
SP Jammu Udhampur Highways was integrated on June 25, 2010 for strengthening and widening 64.58 km of the Jammu-Udhampur part of NH44 on a design, construct, function, finance and switch (DBFOT) annuity foundation.
A concession settlement between the NHAI and the corporate was signed on July 19, 2010 for 20 years. The freeway undertaking was to obtain a set and pre-agreed semi-annual annuity of Rs 201.9 crore from the NHAI as much as June 2031 in accordance with the concession settlement.
Shapoorji Pallonji Roads Pvt Ltd holds a 74% stake within the firm, whereas Shapoorji Pallonji & Firm owns the remaining 26%.
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