Board approves Rs. 75 crore additional term loan from Kotak Mahindra Bank, total facilities Rs. 124 crore

The Board approved availing an additional Term Loan of Rs. 75,00,00,000 from Kotak Mahindra Bank.

Thu 1 Oct 2026

Additional Term Loan

Rs. 75,00,00,000 from Kotak Mahindra Bank

Existing Working Capital Facilities

Rs. 49,00,00,000 (to be renewed)

Total Facilities

Rs. 124,00,00,000

Use of Funds

Part repayment of ICD of AIA Engineering Limited

Security

Hypothecation of current assets, movable fixed assets, and equitable mortgage of Gandhidham (Kutch) industrial property

What the Board approved

The Board, at its meeting on October 01, 2026, approved availing an additional Term Loan facility of Rs. 75,00,00,000 from Kotak Mahindra Bank Limited, together with renewal of existing working capital facilities of Rs. 49,00,00,000, aggregating to Rs.124,00,00,000. This follows the bank's sanction letter dated 29.09.2026.

Use of funds

• The funds are to be utilised for part repayment of the ICD (inter-corporate deposit) of AIA Engineering Limited, as mentioned in the sanction letter.
• In effect, this replaces one form of borrowing with bank debt, rather than being fresh money for expansion.

Security offered

• Hypothecation on current assets of the borrower and all movable fixed assets (present and future), excluding those exclusively financed by other banks or financial institutions.
• Equitable mortgage on the industrial property at Survey No. 245, Village Bharapar, Tal. Gandhidham, Kutch District, Gujarat.

Guarantees

• Unconditional and irrevocable personal guarantee of Mahesh Kumar Agarwal and Kaustubh Agarwal, valid during the tenor of the facility.
• Unconditional and irrevocable corporate guarantee of Sree Metaliks Limited, valid during the tenor of the facility.

Authorisations

The Board authorised Shri Kaustubh Agarwal (Managing Director), Shri Rajesh Mangal (Non-executive, Non-Independent Director) and Shri Mahesh Kumar Agarwal (Chairman and Managing Director) to accept the facility letter and to sign and execute all deeds, facility and security documents, create and perfect securities, and make the necessary updates and registrations.

How investors may read it

Securing a sanctioned bank facility can be seen as a sign of lender comfort and helps refinance an existing inter-corporate deposit. At the same time, it adds secured bank borrowing with charges over the company's assets and the Gandhidham property, and interest costs will depend on the terms of the facility. The meeting began at 11.00 hrs and concluded at 12.30 hrs.

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