Vardhman Polytex Limited has officially informed the stock exchanges regarding the allotment of 1,500 Optionally Convertible Debentures (OCDs) on a preferential basis. These debentures, issued at a price of Rs. 1,00,000 each, aggregate to a total value of Rs. 15 Crores. The allotment was made to the Special Situation India Fund, a non-promoter group entity, in accordance with the special resolution passed by the shareholders during the Extraordinary General Meeting held on April 16, 2026.

The preferential issue has been executed for cash consideration, with the company confirming that 100% of the issue price has been received upfront. These OCDs are convertible into equity shares of the company (face value of Re. 1/- each) within a period of 18 months from the date of allotment. The “Relevant Date” for determining the conversion price of the resultant equity shares will be 30 days prior to the date on which the holder becomes entitled to apply for equity shares. The company has already obtained in-principle approval for this issuance from both BSE Limited and the National Stock Exchange of India Limited.

Vardhman Polytex Limited, a part of the Oswal Group, is a prominent manufacturer engaged in the textile industry, producing various counts of 100% cotton, acrylic, and blended yarns. In recent developments during early 2026, the company successfully reached a full settlement of outstanding dues with Phoenix ARC and received board approval for the sale or disposal of land situated at its Ludhiana unit. The company continues to focus on optimizing its operational efficiency and capital structure, as evidenced by recent fund-raising initiatives and the streamlining of its asset base.

Financial performance in 2025 indicated a focus on turnaround strategies. For the financial year ending March 31, 2025, the company reported revenue of Rs. 311 Crores. Quarterly results throughout 2025 showed varied performance, with net sales for the quarter ended March 2025 reported at Rs. 81.20 Crores, reflecting a 10.19% increase compared to the same period in the previous year. Net profit for that quarter stood at Rs. 0.99 Crores, an increase of 4.18% year-over-year. While the company has navigated challenges, recent updates indicate a concerted effort toward financial stability and long-term growth.