Alstone Textiles (India) has approved the issuance of 300 crore Non-Convertible Preference Shares (NCPS) at Rs 1 each to Golkonda Aluminium Extrusions. This private placement effectively converts a Rs 300 crore unsecured loan into long-term preference equity, easing the company's immediate debt burden while introducing a 2% annual dividend obligation over a 10-year tenure.
Alstone Textiles Converts Rs 300 Crore Debt to Preference Shares
Total issuance of 300 crore shares at Rs 1 par value.
Conversion of Rs 300 crore unsecured loan into 2% NCPS.
Reader Takeaway: This debt-to-equity conversion lowers immediate liability pressure but creates a 10-year, 2% fixed dividend commitment.
What just happened
Alstone Textiles (India) Limited held a board meeting on November 4, 2026, approving the issuance of 300 crore Non-Convertible Preference Shares (NCPS). The shares are issued at a face value of Rs 1 each, totaling Rs 300 crore. The allotment is directed to Golkonda Aluminium Extrusions Limited as a private placement.
Why this matters
The transaction is a strategic move to manage the company's liabilities. By converting an existing unsecured loan of Rs 300 crore into preference shares, Alstone Textiles has effectively reclassified a significant debt obligation. While this reduces the pressure of unsecured loan repayments, it introduces a long-term obligation in the form of a 2% non-cumulative annual dividend payable to the allottee over a 10-year tenure.
Capital Structure Impact
The company's paid-up preference capital will rise to Rs 300 crore following this move. The authorized preference share capital limit remains unchanged at Rs 500 crore. This shift alters the balance sheet composition, moving funds from debt to equity-like instruments.
What to track next
Investors should monitor future quarterly filings to assess how this transition impacts the company’s interest coverage ratios and overall debt profile. The 10-year redemption timeline will also be a key factor in long-term liquidity planning for the firm.