Loan agreement: up to Rs. 100,00,00,000 to wholly owned subsidiary JK Defence & Aerospace

Loan agreement executed with JK Defence & Aerospace Ltd, a wholly owned subsidiary, to lend up to Rs. 100,00,00,000 in one or more tranches.

Thu 8 Oct 2026

Loan Amount

up to Rs. 100,00,00,000 (Rupees Hundred Crores Only) in one or more tranches

Interest Rate

10% p.a.

Tenure

3 (Three) years

What the company informed the exchanges

• The company has executed a Loan Agreement dated October 08, 2026 with JK Defence & Aerospace Limited, which it describes as a wholly owned subsidiary.
• Under this agreement the company will grant a loan of up to Rs. 100,00,00,000/- (Rupees Hundred Crores Only) to JK Defence, in one or more tranches.

Terms stated in the disclosure

• Lender: Jaykay Enterprises Limited | Borrower: JK Defence & Aerospace Limited
• Nature of loan: Inter-Corporate Deposit
• Interest rate: 10% p.a.
• Tenure of the Loan Agreement: 3 (Three) years
• Repayment: the loan together with accrued interest shall be repayable in accordance with the terms mutually agreed between the parties.
• Security: the loan is stated to be unsecured.
• Total amount outstanding on date, excluding this loan: Nil.

How the money movement reads

• The facility is up to Rs. 100,00,00,000, to be drawn in one or more tranches, so the entire amount need not move at one time.
• The borrower is a wholly owned subsidiary, so the credit is being extended within the group rather than to an outside party.
• Interest at 10% p.a. applies on the loan, and repayment of principal along with accrued interest follows terms the two parties mutually agree.

Related party angle

• The company states that the transaction falls within related party transactions and that it is at arm's length basis, because JK Defence is a wholly owned subsidiary.

What a retail investor can take from this

• This is an inter-corporate deposit from the listed company to its own wholly owned subsidiary, at a stated interest rate of 10% p.a. and a tenure of 3 years, with the amount drawn in one or more tranches.
• The loan is unsecured, which means no security is attached to it, and the repayment schedule is left to be mutually agreed between the parties rather than a fixed instalment plan in the disclosure.
• Since the borrower is a wholly owned subsidiary, the interest earned and the eventual repayment flow back into the group. The size of the facility, the interest rate, the tenure and the unsecured nature are the main terms to note.

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