Hazoor Multi Projects Strengthens Subsidiary Capital Structure Through OCD-to-Equity Conversion

Mumbai (Maharashtra) [India], January 28: Hazoor Multi Projects Limited (HMPL) has announced the conversion of its existing investment in Optionally Convertible Debentures (OCDs) of its wholly owned subsidiary, Square Port Shipyard Private Limited (SPSPL), into equity shares. The conversion has been undertaken in accordance with the applicable terms of issue and in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As part of the transaction, Hazoor Multi Projects Limited has been allotted 2.50 crore equity shares of Square Port Shipyard Private Limited at a face value of ₹10 per share, amounting to a total consideration of ₹25 crore. The conversion has been executed through the settlement of the existing debenture obligation and does not involve any cash outflow.

Post-conversion, Hazoor Multi Projects Limited continues to hold 100% equity ownership in Square Port Shipyard Private Limited. The Company has confirmed that there is no change in ownership, control, or management of the subsidiary, which remains a wholly owned arm of HMPL.

Incorporated in November 2022, Square Port Shipyard Private Limited operates in the manufacturing and repair of vessels and allied maritime activities. The subsidiary has demonstrated robust financial performance, reporting a turnover of ₹68.95 crore and a net profit of ₹17.98 crore for FY25, underscoring the strength and scalability of its operations.

The conversion of OCDs into equity represents a strategic step by Hazoor Multi Projects Limited to further strengthen the capital base of its subsidiary while reinforcing its long-term commitment to the shipyard business. The Company has clarified that the transaction does not constitute a related-party transaction under applicable regulatory provisions.

No governmental or regulatory approvals were required for the conversion, and the process is expected to be completed within the stipulated timeline. The move aligns with HMPL's broader strategy of optimising its group structure and supporting sustainable growth across its key operating segments.

Hazoor Multi Projects Limited stated that the conversion reflects confidence in the operational performance and future prospects of Square Port Shipyard Private Limited, while maintaining full strategic and managerial control.

Disclaimer:This article is for informational purposes only and does not constitute financial advice.

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