Default on redemption of 0.01% redeemable preference shares; Rs. 14.52 crore unpaid
Blue Coast Hotels has disclosed a default on payment relating to redemption of its 0.01% Redeemable Preference Shares (RPS) issued to promoters (Body Corporate).
By ScoutQuest · · 2 min read
- Current default amount
- Rs. 14.52 crore — principal Rs. 9.67 crore + dividend Rs. 4.85 crore
- Date of default
- 30th October, 2026
- Total financial indebtedness
- Rs. 34.57 crore (excluding dividend)
What the update says
Blue Coast Hotels Limited has disclosed a default on payment relating to the redemption of its 0.01% Redeemable Preference Shares (RPS) issued to promoters (Body Corporate). The date of default is 30th October, 2026, and the instrument had 11 holders of the security as on the date of default.
The amounts involved
- Current default amount: Rs. 14.52 crore, being principal of Rs. 9.67 crore and dividend of Rs. 4.85 crore.
- Details of the obligation: amount Rs. 9.67 crore, tenure 30 years, coupon not applicable, rate of dividend 0.01%, and unsecured.
- Redemption date is 30.10.2032, with the RPS to be redeemed in annual instalments running up to that date, the first such instalment year beginning on 30th October, 2023.
- Total financial indebtedness of the company, including short-term and long-term debt, is Rs. 34.57 crore, excluding the amount of dividend.
Background on the instrument
- Shareholders, through a postal ballot result, approved an extension of the redemption tenure of the Redeemable Cumulative Preference Shares, with redemption to happen in annual instalments up to 30th October, 2032.
- On 28th September, 2024, the coupon rate on all outstanding RPS was reduced from 10% per annum to 0.01% per annum.
- Between November 2024 and May 2026, a part of the RPS was converted into Compulsorily Convertible Preference Shares and then into equity shares, with the final allotment made on May 13, 2026.
- The update states the total amount issued through debt securities is NA.
What it means for an investor
- A default disclosure means an amount due on the instrument was not paid by the stated date. Here the unpaid amount relates to redemption of preference shares held by promoter bodies corporate.
- The preference shares are unsecured, so the payment obligation is not described as backed by security over assets.
- Total financial indebtedness of Rs. 34.57 crore is stated excluding the dividend amount, which allows the size of the default to be compared with the company's overall debt.
More numbers
- Current default amount14.52
- Principal amount in defaultRs. 9.67
- Dividend amount in defaultRs. 4.85
- Number of holders of the security as on date of default11
- Rate of dividend on the RPS0.01%
- Total financial indebtedness (excluding dividend)34.57
- Tenure of the instrument30 years
- Coupon rate before reduction10% per annum
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