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Ashoka Buildcon finishes Karnataka highway but faces stock decline amid debt restructuring

A major highway milestone meets financial turbulence. Can Ashoka Buildcon's debt reshuffle and new contracts reverse its plunging stock?

,   and  ASMedia
1 min read
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Ashoka Buildcon finishes Karnataka highway but faces stock decline amid debt restructuring

Ashoka Buildcon has completed a major highway expansion in Karnataka while restructuring its debt to improve financial stability. The company recently converted ₹7.74 million in debentures to preserve capital and avoid early equity dilution. Despite this move, its stock has fallen sharply this year.

The firm issued a provisional completion certificate for a 50-kilometre stretch of National Highway 206 in Karnataka. The four-lane expansion was built under the Hybrid Annuity Model (HAM), ensuring steady revenue for the company.

Ashoka Buildcon is also adjusting its financial strategy. Around 7.74 million compulsorily convertible debentures (CCDs) were switched to optionally convertible instruments (OCDs). This change protects existing ownership shares while offering more flexibility in managing debt.

The company's stock, however, has struggled in 2026. Shares hit a 52-week low of ₹115.92 on Friday, dropping roughly 31% since January. Investors may be watching for new opportunities, including the upcoming Telangana state budget on March 20, which could bring fresh contracts.

Beyond Karnataka, Ashoka Buildcon has 12 major projects underway or in planning across six states. These include highways, bridges, and metro rail developments in Maharashtra, Madhya Pradesh, Uttar Pradesh, Telangana, Rajasthan, and Gujarat.

The highway completion and debt restructuring come as Ashoka Buildcon seeks to strengthen its financial position. The Telangana budget announcement later this month may provide further contract prospects. For now, the company continues expanding its infrastructure portfolio despite market challenges.

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