Alstone Textiles (India) Limited converts Rs 300 crore loan

Alstone Textiles (India) Limited approved on 4 November 2026 the conversion of a Rs 300 crore unsecured loan into 300 crore 2% non-convertible preference shares, issued at Rs 1 each to Golkonda Aluminium Extrusions Limited. The shares carry a 10-year tenure, are redeemable at par and have a non-cumulative annual dividend.

What did Alstone Textiles approve on 4 November 2026?

Alstone Textiles approved the allotment of 300 crore non-convertible preference shares, or NCPS, against an existing unsecured loan of Rs 300 crore. The board approved the transaction at its 4 November 2026 meeting, with each NCPS carrying a face value of Rs 1 and being issued at par.

The company said the issue was made through private placement by converting the existing loan rather than through a new cash subscription. The disclosed consideration and the aggregate value of the allotted NCPS are both Rs 300 crore, directly matching the stated unsecured loan amount.

The board meeting began at 4:00 p.m. and ended at 4:30 p.m. on 4 November 2026. Alstone Textiles made the announcement under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The shares are non-convertible, meaning the filing does not provide for their conversion into equity shares or another security. The annexure marks conversion information as not applicable and instead specifies redemption at par after the 10-year tenure.

Who received Alstone Textiles' 2% preference shares?

Alstone Textiles named Golkonda Aluminium Extrusions Limited as the sole allottee of the 300 crore NCPS. The private-placement issue gave the one allottee shares valued at Rs 300 crore, based on the Rs 1 issue price for each preference share.

The filing identifies one allottee and does not disclose any additional recipient, tranche or separate pricing arrangement. It also does not state the creditor's ownership position in Alstone Textiles, any relationship between the parties, or the original date on which the unsecured loan was provided.

Alstone Textiles described the instrument as 2% NCPS, with the dividend explicitly identified as non-cumulative. On the disclosed Rs 300 crore issue amount, a 2% annual rate corresponds arithmetically to Rs 6 crore for a full year, although the filing does not specify a dividend payment date or further payment conditions.

How does the allotment compare with authorised preference capital?

Alstone Textiles said the Rs 300 crore allotment was made from authorised preference share capital of Rs 500 crore. The authorised capital consists of 500 crore preference shares with a face value of Rs 1 each, while the new allotment consists of 300 crore shares at the same face value.

Following the allotment, paid-up preference capital will be Rs 300 crore and authorised preference capital will remain Rs 500 crore. The Rs 200 crore difference between those figures is the unused portion of the disclosed authorised preference capital, calculated from the company's stated amounts.

The Rs 300 crore change is a conversion of a disclosed unsecured loan into preference shares of the same amount. The announcement does not provide the former loan's interest rate, repayment schedule, lender terms or financial-statement classification before the conversion.

The filing also does not disclose any intended use for the Rs 200 crore of authorised preference capital not represented by the allotment. Therefore, the Rs 500 crore authorised figure should not be read as a commitment to make a further preference-share issue.

What are the dividend and redemption terms of Alstone Textiles' NCPS?

Alstone Textiles' NCPS carry a non-cumulative dividend of 2% per annum and are redeemable at par after 10 years from the allotment date. The Rs 1 redemption value per share matches both the Rs 1 face value and the Rs 1 issue price disclosed for the 300 crore shares.

Non-cumulative means the company has described the dividend without accumulation, rather than as an amount that builds up across periods. Beyond the 2% annual rate, the filing does not set out a record date, payment frequency, payment date or conditions governing dividend declaration.

The 10-year term starts from the allotment date, but Alstone Textiles did not provide a separate calendar maturity date in the 4 November 2026 disclosure. It also did not disclose an early-redemption right, buyback arrangement or call option for the NCPS.

The announced end-of-tenure mechanism is at-par redemption, not conversion. This distinguishes the 300 crore NCPS from convertible instruments, for which the company would have needed to disclose conversion terms; its annexure states that such information is not applicable.

What information did Alstone Textiles not disclose about the conversion?

Alstone Textiles did not disclose the accounting impact of converting the Rs 300 crore loan into NCPS. The filing does not say how the company will classify the preference shares in future financial statements or how the transaction will affect reported liabilities, equity, finance costs or profit.

The announcement also does not state when the unsecured loan arose, whether it had any interest or other consideration, or whether the Rs 300 crore represented all borrowings from Golkonda Aluminium Extrusions Limited. Its stated purpose is limited to the conversion and allotment approved on 4 November 2026.

No shareholding figure, voting-rights information or post-allotment ownership percentage for Golkonda Aluminium Extrusions Limited appears in the two-page filing. The disclosed facts are that it is the sole allottee of 300 crore NCPS and that the instruments are non-convertible.

Conclusion

Alstone Textiles has replaced the disclosed Rs 300 crore unsecured loan with 300 crore NCPS issued at Rs 1 each to one creditor, Golkonda Aluminium Extrusions Limited. The transaction sets post-allotment paid-up preference capital at Rs 300 crore while leaving authorised preference capital unchanged at Rs 500 crore.

The next disclosed matter to watch is the 2% non-cumulative annual dividend under the new terms and the at-par redemption due after the 10-year tenure from allotment. Alstone Textiles has not disclosed a calendar redemption date, dividend payment schedule or accounting treatment for the Rs 300 crore conversion.