Stock Report

A2Z Infra Engineering Secures ₹142 Cr Debt Settlement with Indian Bank

Posted On : 2026-02-25 11:51:33( TIMEZONE : IST )

A2Z Infra Engineering Limited signed a full cash One Time Settlement (OTS) agreement with Indian Bank, reducing outstanding fund-based liabilities of ₹142.05 crore for a total settlement consideration of ₹50 crore.

Debt Background and NPA Status

As of June 30, 2025, Indian Bank reported total fund-based exposure (excluding contingent Bank Guarantee liability of ₹14.40 crore) at ₹142.05 crore across the company and its associate companies, all classified as Non-Performing Assets (NPAs). As corporate guarantor for associate exposures, A2Z pursued consolidated settlement discussions, culminating in Indian Bank's sanction letter Ref No. SAMLB/NDIA2Z/394 dated February 24, 2026.

Strategic Debt Reduction Efforts

The OTS forms part of A2Z's multi-year turnaround strategy involving bilateral settlements with various lenders. Board approval came via circulation resolution on February 24, 2026, marking another step in systematically addressing the debt burden.

Payment Schedule Details

The ₹50 crore settlement follows a deferred structure:

Upfront: ₹4.0 crore deposited in a non-lien account.

Within 15 days: ₹9.0 crore.

Within 45 days: ₹9.0 crore.

Within 90 days: ₹28.0 crore.

A 90-day cure period applies for delays beyond 90 days, with 12.25% p.a. interest on overdue amounts from respective due dates.

Shares of A2Z Infra Engineering Limited was last trading in BSE at Rs. 15.86 as compared to the previous close of Rs. 14.42. The total number of shares traded during the day was 54586 in over 155 trades.

The stock hit an intraday high of Rs. 15.86 and intraday low of 14.27. The net turnover during the day was Rs. 847109.00.