This Realty Stock Converts Rs 25 Cr Debt Into Equity; Big Move Explained
Business
The stock exchanges have been notified by Hazoor Multi Projects Ltd. (HMPL) that it has converted its current investment in Optionally Convertible Debentures (OCDs) of Square Port Shipyard Private Limited (SPSPL), a fully owned subsidiary, into equity shares. HMPL has been allotted 2.50 crore SPSPL equity shares as part of this conversion. There has been no cash outflow and the conversion has been completed fully in compliance with all regulations regulating the OCDs. Rather, it has been carried out by settling the current debt obligation and strengthening the subsidiary’s equity structure.
Following this transaction, HMPL continues to hold a 100% equity shareholding in Square Port Shipyard. The corporation has made it clear that this conversion does not affect ownership, control, or management of the subsidiary; SPSPL is still a fully owned subsidiary of Hazoor Multi Projects Limited.
Founded on November 29, 2022, Square Port Shipyard Private Limited (SPSPL) is involved in the production and maintenance of vessels as well as other maritime-related activities. With sales of Rs 68.95 crore and a net profit of Rs 17.98 crore in FY 2024-2025, the subsidiary has shown impressive financial performance. With sales of Rs 75.66 crore and a profit of Rs 4.39 crore in the preceding fiscal year, FY 2023-2024, SPSPL demonstrated consistent operational progress.
The conversion’s purchase costs, which come to a total of Rs 25 crore, have been estimated at Rs 10 per equity share. No governmental or regulatory clearances are needed, and the transaction does not qualify as a related party transaction. It is anticipated that the conversion process will be finished by March 2026.
Hazoor Multi Projects Limited (HMPL) has informed the BSE Limited about the cessation of its subsidiary and step-down subsidiary status. The disclosure was made in connection with the approval of the company’s unaudited financial results for the quarter and nine months ended December 31, 2025.
In order to seize control of Vyom Hydrocarbon Private Limited (VHPL), HMPL previously obtained a 51 percent share in the company through a share purchase agreement and appointed directors to its board. Quippo Oil and Gas Infrastructure Limited became a step-down subsidiary of HMPL after VHPL acquired a 100% stake in the company.
On July 2, 2025, VHPL issued Compulsorily Convertible Debentures (CCDs) aggregating Rs 22.30 crore to Vyom Geophysical Private Limited. In December 2025, HMPL received communications stating that these CCDs had been converted into equity shares of VHPL, reportedly due to an event of default.
After HMPL finalized its consolidated financial results for the quarter and nine months ending December 31, 2025, it determined that its stake in VHPL had been diluted below the majority threshold based on the facts and records currently available. According to the relevant accounting principles, the corporation no longer has control over VHPL.
Consequently, VHPL has ceased to be a subsidiary of HMPL, and Quippo Oil and Gas Infrastructure Limited has ceased to be its step-down subsidiary. The company stated that it is taking appropriate steps to obtain and review the relevant statutory records and documentation related to the matter.
Founded in 1992 and headquartered in Mumbai, Hazoor Multi Projects Ltd. (HMPL) is a BSE-listed company that specializes in infrastructure development, including real estate, EPC (Engineering, Procurement, and building) contracts, and road building. It serves as a contractor for significant projects involving MSRDC and NHAI.