Sugar's Financial Sour Spot: Bajaj Hindusthan Defaults on ₹2.68 Billion OCDs

Bajaj Hindusthan Sugar Limited has defaulted on its optionally convertible debentures (OCDs) of ₹2.68 billion, including interest of ₹870.8 million, as of March 31, 2025. It has a bearing on 12 investors and follows a downgrade by CARE Ratings from 'B+' to 'D' due to weak liquidity and inadequate accruals. The failure of the company to obtain lender consent for OCD conversion into equity has worsened its financial situation. BHSL's balance sheet is tied down by a leveraged capital structure, large investments in group firms, and the cyclic nature of the sugar business. The lenders, State Bank of India being the lead, are under notice on the company's loans, which can trigger additional financial consequences.

 

Source: CARE Ratings, Economic Times