Aban Offshore Discloses ₹281 Cr in Unredeemed Preference Shares Amid CIRP

Aban Offshore Limited has disclosed a significant outstanding financial obligation: ₹281 crore worth of Non-Convertible Redeemable Preference (NCRP) shares, originally issued in 2014, remain unredeemed. The company made this disclosure, which includes noting that ₹20 crore of these shares are unlisted and suspended from trading, in compliance with SEBI regulations.

The company is concurrently undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). This process was initiated by a National Company Law Tribunal (NCLT) order dated September 1, 2025.

This disclosure sheds light on long-standing financial commitments that have persisted for over a decade. For stakeholders, it highlights that pre-CIRP liabilities continue to be a factor as the company navigates its restructuring. Aban Offshore has a history of severe financial challenges and high debt levels, with previous restructuring efforts and insolvency proceedings. The persistence of these unredeemed preference shares, dating back to 2014, underscores the deep-rooted nature of some financial obligations predating the current CIRP phase.

As of April 2, 2026, the outstanding Non-Convertible Redeemable Preference Shares stood at ₹281.00 crores, with ₹20.00 crores of this amount being unlisted and suspended.

The updated information offers greater clarity on this specific ₹281 crore liability and officially acknowledges the status of the ₹20 crore in unlisted and suspended preference shares. This reiterates that the company's path to financial recovery is contingent upon the successful completion of the CIRP. Creditors and potential resolution applicants gain another data point regarding the company's past financial commitments.

These unredeemed preference shares represent a financial obligation that will require resolution within or after the CIRP. The unlisted and suspended status of ₹20 crore may complicate their resolution process. The ongoing CIRP itself poses a significant risk to the company's future operations and shareholder value.

Aban Offshore operates in the offshore drilling segment. While direct listed peers are few, companies like Great Eastern Shipping Co. Ltd. (GE Shipping), a diversified player with offshore support services, and Dolphin Offshore Enterprise (India) Ltd., focused on offshore oilfield services, operate in related sectors. However, they differ in scale and current financial health compared to Aban Offshore's CIRP status.

Investors will be closely monitoring updates from the NCLT regarding CIRP progress and potential resolution plans. Key aspects to track include how the unredeemed preference shares are addressed within the overall resolution framework, further disclosures on financial restructuring, and any announcements on operational revival plans post-CIRP.