Magnum Ventures532896Debt issuance notice

Entered into loan agreement for ₹60 Crore from Tata Capital; charge on hotel assets

Term loan of ₹60 Crore from Tata Capital at 12.00% p.a. floating (LTPLR 8.75% + 3.25%), tenure 135 months.

By ScoutQuest · Mon 26 Oct 2026, 6:44 PM IST · 3 min read

Loan Amount: Term loan of ₹60 Crore from Tata Capital
Interest Rate: 12.00% p.a. floating (LTPLR 8.75% + 3.25%)
Tenure: 135 months

What the company announced

Magnum Ventures has entered into a term loan agreement with Tata Capital Limited for financial assistance of ₹60 Crore, and a charge is being created on hotel assets for it. The loan is a Term Loan; the sanction letter is dated 29th August 2026. Tata Capital holds Nil shareholding in the company, the parties are not related to the promoter or promoter group, and the transaction does not fall within related party transactions.

Where the money is meant to go

Towards repayment of unsecured loan up to Rs. 20 crores
Capex up to Rs. 25 crores, required for upgradation of the hotel (Radisson brand)
Up to Rs. 10 crores towards partial repayment of the TFCI loan
Up to Rs. 5 crores for general corporate purpose

Cost and repayment

Interest is LTPLR plus 3.25%, i.e. 12.00 % p.a. floating. LTPLR as on date is 8.75 %. p.a., and the payable rate changes as LTPLR changes.
Interest is to be paid monthly from the date of first disbursement till maturity; principal is to be repaid in equal quarterly instalments, in line with the TFCI facility.
Tenure is 135 Months.
The sanctioned ROI stays valid for 30 days from the date of the sanction letter; later revisions are communicated through an Interest Communication Letter.
Post demerger of the hotel division from the paper division, the borrower's rate is to be reduced by 75 bps, subject to satisfactory conduct and perfection of security.

What the lender gets as security

Primary: first pari passu charge by way of hypothecation over the present and future movable fixed assets of the hotel division, and a first pari passu charge by way of hypothecation over the present and future current assets of the hotel division.
Collateral: first pari passu charge by way of mortgage over the property at plot no 64/6, 64/6/3 to 64/6/5, Site-IV, Industrial Area, Sahibabad, U.P., with all structures and appurtenances, present and future.
Others: a Non Disposable Undertaking (NDU) over shares held by promoters, excluding the shares already pledged, and personal guarantees of Abhay Jain, Parv Jain, Parveen Jain and Pradeep Kumar Jain.

How the money comes in

Tranche I: up to Rs 10 crore towards downsizing the TFCI exposure and repayment of unsecured promoter loan up to Rs 20 crores. This tranche is to be disbursed on receipt of the pari passu letter from TFCI.
Tranche II: up to Rs. 25 crores towards capex for the Radisson brand upgradation and Rs. 5 crores for general corporate purpose. This tranche is to be disbursed post security perfection.
Overall, disbursement is subject to necessary approvals and the pari passu letter of charge on hotel assets from TFCI.

What this means to a reader

The company is part-funding repayment of existing obligations (an unsecured loan and part of the TFCI loan) and a hotel upgrade with fresh borrowings at a floating rate. In return, the lender gets charge over hotel division assets and the Sahibabad property, plus promoter share restrictions and personal guarantees. The 75 bps rate reduction is linked to the demerger and to satisfactory conduct and perfection of security.

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