SBEC Sugar seals Rs 142 crore one-time settlement with Modi Industries

SBEC Sugar Limited has executed an agreement-cum-deed of settlement with Modi Industries Limited for a one-time settlement of around Rs 142 crore in receivables, addressing legacy exposure and supporting balance sheet clarity, recoverability, and future strategic options for the sugar producer.

The company has historically been a major secured creditor of Modi Industries, with significant receivables backed by substantial underlying assets. Management had earlier expressed confidence about full recovery of these dues, citing adequate security coverage. The new settlement agreement converts this long-standing exposure into a structured recovery framework, reducing uncertainty around timing and quantum of cash inflows.

The development comes against the backdrop of a tighter sugar-policy environment and evolving working-capital dynamics for mills, where resolution of legacy stressed assets can materially improve leverage metrics and financial flexibility. Market participants tracking SBEC Sugar have already highlighted increased institutional interest and capital rotation into the stock, making liability clean-up and receivables resolution particularly relevant for valuation.

Key highlights

• SBEC Sugar Ltd enters into an agreement-cum-deed of settlement with Modi Industries Ltd.One-time settlement covers dues/receivables aggregating around Rs 1.42 billion (Rs 142 crore).
• ​SBEC Sugar has been a major secured creditor of Modi Industries, backed by substantial underlying properties.
• ​Settlement provides clarity on recovery of long-outstanding amounts and supports balance sheet quality.
• Move aligns with sector focus on strengthening capital structures amid changing sugar-industry and policy conditions.

Sources: SBEC Sugar Limited; Modi Industries Limited; SBEC Sugar Annual Reports; Umesh Modi Group / SBEC Sugar investor materials.