Ashoka Buildcon Limited (ABL) and its subsidiary, Viva Highways Limited (VHL), have successfully converted their existing Class A Compulsorily Convertible Debentures (CCDs) in Ashoka Concessions Limited (ACL) into an equivalent number of Optionally Convertible Debentures (OCDs). This action, effective March 13, 2026, involves a total of 77,41,250 instruments. The rationale centers on evolving business needs, capital protection, and enhancing operational flexibility for ACL.
Debenture Variation Announcement
Ashoka Buildcon Limited (ABL), along with its subsidiary Viva Highways Limited (VHL), has formally announced a variation in the terms of outstanding debt instruments held in Ashoka Concessions Limited (ACL), a wholly-owned subsidiary. The original Class A Compulsorily Convertible Debentures (CCDs) were purchased on November 27, 2025.
Holdings Prior to Variation
As of the announcement date, the total holdings of Class A CCDs across ABL and VHL amounted to 77,41,250 units. The breakdown was as follows:
- Ashoka Buildcon Limited (ABL): 49,81,119 units
- Viva Highways Limited (VHL): 27,60,131 units
Conversion Details and Rationale
Effective March 13, 2026, ACL communicated that necessary approvals were secured to vary the existing Class A CCDs into an equivalent number of Class A Optionally Convertible Debentures (OCDs).
The conversion ratio is 1:1, confirmed by a valuation report from R & A Valuation LLP dated March 9, 2026. The resulting OCDs are structured as:
- For ABL: 49,81,119 Class A OCDs (0.01%)
- For VHL: 27,60,131 Class A OCDs (0.01%)
The primary rationale driving this change includes:
- Addressing evolving business requirements.
- The Company’s intent to limit further equity exposure and ensure capital protection.
- Gaining operational flexibility.
Impact on Capital Structure
The substitution of CCDs with OCDs is intended to allow ACL to implement an efficient corporate financing structure without changing ACL’s overall capital structure. This move supports better business potential and growth.
Importantly, the restructuring results in no change in the equity shareholding pattern for either the Company (ABL) or ACL. The benefit to the promoter group is described as the intention to limit further equity exposure and avoid dilution risk.
Source: BSE
