Blue Coast Hotels discloses Rs 14.52 crore preference share default

Blue Coast Hotels Limited said in a filing with the National Stock Exchange on 30 October 2026 that it has defaulted on the redemption of its 0.01% redeemable preference shares. The company disclosed a default amount of Rs 14.52 crore, made up of Rs 9.67 crore of principal and Rs 4.85 crore of dividend due.

What Happened

In the company's filing with the National Stock Exchange, made under Regulation 30 of the SEBI listing rules, Blue Coast Hotels disclosed a default on payment for unlisted debt securities, here its 0.01% redeemable preference shares (ISIN INE472B04015). Preference shares are a type of share whose holders are paid a fixed dividend and have the money returned on a set date. The date of default is given as 30 October 2026.

The filing says the shares were issued to promoters, which are body corporates. They are held by 11 holders as on the date of default. The shares are unsecured, carry a tenure of 30 years and a dividend rate of 0.01%. The filing gives the amount issued as Rs 9.67 crore and the dividend due as Rs 4.85 crore.

According to the filing, 10% of the shares are to be redeemed every year from 30 October 2023 to 30 October 2032. The filing says shareholders approved this extended schedule through a postal ballot, with the result dated 20 September 2017.

The filing also lists changes made to the rights of these shares with the approval of the board, the shareholders and the preference shareholders. On 28 September 2024, the dividend rate on all outstanding shares was cut from 10% a year to 0.01% a year. Between November 2024 and May 2026, parts of the holding were converted into compulsorily convertible preference shares and then into equity shares, the last conversion being the allotment of 24,87,100 equity shares on 13 May 2026.

The company gave its total financial indebtedness, including short-term and long-term debt, as Rs 34.57 crore, excluding the dividend amount. The filing does not give a reason for the default.

What It Means

This is a disclosure by the company itself, not a finding by any regulator or court. The filing does not say that any action has been taken against the company or that its other borrowings are in default.

For shareholders of Blue Coast Hotels, the filing shows that the company has not paid an amount it was due to pay to the holders of these preference shares. All of these holders are promoter body corporates, according to the filing, and the filing does not say what the company plans to do next or when the amount will be paid.

Readers who hold shares in listed companies can read the company's own filing on the National Stock Exchange website. Complaints against listed companies can be lodged at https://scores.sebi.gov.in.

Oquilia Data: Blue Coast Hotels Ltd. (NSE: BLUECOAST)

Closes adjusted for splits and bonuses; returns exclude dividends. Facts from NSE's files, not investment advice.

Source: Company filing on NSE