Aditya Birla Real Estate Limited announced that it has received in-principle approval from the BSE Limited to amend the clauses of its 8.05% Unsecured Debentures amounting to Rs. 250 crores. The key changes involve incorporating provisions for the Exercise of the Call Option by the Company and deleting a restrictive covenant regarding the Disposal of Assets exceeding Rs. 200 crores.
Approval Received for Debenture Trust Deed Amendments
Aditya Birla Real Estate Limited confirmed receiving the necessary in-principle approval from the BSE Limited on March 25, 2026. This approval pertains to amending the original Debenture Trust Deed (dated March 1, 2024) and the First Amendment Deed (dated June 16, 2025) concerning the Rs. 250 crore issue of 8.05% Unsecured, Listed, Rated, Senior, Redeemable, Non-Convertible Debentures (ISIN -INE055A08045).
The Company plans to formalize these changes by executing a Second Amendment Deed with the Debenture Trustee, SBICAP Trustee Company Limited.
Key Amendments Incorporated
The primary focus of the modification centers on enhancing the company’s financial flexibility, specifically by:
1. Addition of Call Option Provisions
The definition of “Mandatory Redemption Event” in the Debenture Trust Deeds is being updated to specifically include the “Exercise of the Call Option by the Company.”
The existing clause that outlines triggers for mandatory redemption will be expanded to include this call option event, alongside existing triggers such as:
- It becoming unlawful for a Debenture Holder to hold the Debentures.
- Occurrence and continuation of an Event of default.
- The long-term rating being downgraded to ‘A’ to below or being withdrawn/suspended.
2. Deletion of Asset Disposal Restriction
A significant covenant related to asset management is being removed from Schedule 4 (General Undertakings). The existing Sub-Clause 2.26 (Disposal of Assets) is being Deleted. Previously, this clause restricted the Company from disposing of any assets valued over and above INR 200,00,00,000/- (Rupees Two Hundred Crores Only) until the Final Redemption Date. This deletion provides the Company with greater operational latitude concerning asset monetization.
BSE Approval Conditions
The BSE’s in-principle approval is subject to the Company fulfilling several standard regulatory conditions, including submitting confirmation from the Depositories regarding the structural modifications and ensuring compliance with all applicable SEBI and Companies Act provisions as of the date of implementation.
Source: BSE
