Default disclosed on term loan and working capital loan owing to Invent ARC
Electrotherm (India) Ltd has disclosed a default on payment of interest and repayment of principal on loans from Invent Assets Securitisation & Reconstruction Private Limited.
By ScoutQuest · · 2 min read
- Principal Due
- Rs. 56.00 Crore
- Interest Due
- Rs. 3.81 Crore
- Total Financial Indebtedness
- Rs. 997.42 Crore
What the company told the exchanges
Electrotherm (India) Limited has shared a disclosure of a default on payment of interest and repayment of principal on loans from banks and financial institutions. The lender named is Invent Assets Securitisation & Reconstruction Private Limited, the assignee of the debts of Allahabad Bank (now Indian Bank) and Punjab National Bank. The obligation is a Term Loan and a Working Capital Loan, and it is secured.
The default itself
- Date of default: 30-09-2026
- Principal: Rs. 56.00 Crore, due up to 30th September, 2026
- Interest: Rs. 3.81 Crore, due up to 30th September, 2026
The settlement behind the loan
- Principal as per settlement with Invent ARC: Rs. 180.00 Crores
- Tenure: 11 years
- Interest rate: 11% p.a.
- The obligation is secured
Size relative to the company's total debt
- Total outstanding borrowings from banks / financial institutions: Rs. 983.98 Crore as at 30th September, 2026
- Total financial indebtedness, including short-term and long-term debt: Rs. 997.42 Crore as at 30th September, 2026
How the company explains it
The company's note says certain banks assigned their loans / debts to Assets Reconstruction Companies (ARCs) and that the company has entered into a settlement with the ARC for payment of the outstanding loans / debts on certain terms and conditions.
Points to keep in mind
- The amounts are as at 30th September, 2026, taken from the company's books on a provisional basis, and are subject to confirmation from the lender.
- The outstanding borrowings figure is after deducting the settlement amount already paid up to the date of default, and excludes uncharged interest.
- The borrowings shown do not include interest of the unsettled lender Rare Asset Reconstruction Limited (assignee of Indian Overseas Bank), which the company says has not been provided in its books after that lender classified the loan account as a Non-Performing Asset (NPA).
A default disclosure records that a payment due to a lender was not made on time. For a retail investor, the settlement with the ARC and the company's overall debt of Rs. 997.42 Crore are the figures that frame the picture.
Also from Electrotherm (India)
Board approves variation of powers of Managing Director Shailesh Bhandari as Executive Vice Chairman
4 Nov 2026
Board approves Q2 results; standalone net loss Rs. 20.06 crore, auditor flags unprovided interest
4 Nov 2026
Board meeting on 04 November 2026 to consider unaudited standalone and consolidated results
24 Oct 2026
More numbers
- Principal amount in defaultRs. 56.00 Crore
- Interest amount in defaultRs. 3.81 Crore
- Principal as per settlement with Invent ARCRs. 180.00 Crores
- Tenure of the settled obligation11 years
- Interest rate on the obligation11% p.a.
- Total outstanding borrowings from banks / financial institutionsRs. 983.98 Crore
- Total financial indebtednessRs. 997.42 Crore
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