Bajaj Hindusthan Sugar Converts Loan to Preference Shares

Bajaj Hindusthan Sugar swaps a Rs 98.89 crore loan for convertible preference shares, slashing debt and interest costs while keeping immediate dilution modest.

• Issued 98,89,37,706 Series A 0.01% compulsorily convertible preference shares at Rs 1 face value (par), generating Rs 98.89 crore.
• UCO Bank receives all shares now; a second lender will join after its conversion, settling the outstanding loan under the company’s Resolution Plan.
• The conversion is a pure balance‑sheet re‑classification – no cash outflow – and it trims leverage ratios and the interest burden.
• While the shares could later convert into equity (potentially diluting shareholders), the current 0.01% dividend makes the cost negligible and strengthens the firm’s capacity to raise cheaper financing for growth.