Board approves grant of INR 5 Crores unsecured loan to wholly owned subsidiary
Board of Directors met on 22nd Oct 2026 and approved the grant of a loan to Viyom Steel Infra Private Limited, a wholly owned subsidiary.
By ScoutQuest · · 2 min read
- Loan Amount
- INR 5 Crores
- Interest Rate
- 9.5%
- Outstanding Loan
- ~Rs. 17.43 crore
Board approval for an inter-corporate loan
The Board of Directors, at its meeting held on Thursday, 22nd Oct 2026, approved the grant of a loan to Viyom Steel Infra Private Limited, a wholly owned subsidiary of the company, and entered into a loan agreement for the purpose.
Key terms as disclosed
- Lender: Vibhor Steel Tubes Limited
- Borrower: Viyom Steel Infra Private Limited, a 100% subsidiary
- Amount: INR 5 Crores
- Nature of loan: Unsecured loan
- Rate of interest: 9.5%
- Repayment: repayable on demand, subject to a maximum period of 10 years
- Security provided: Nil
- Date of execution of the loan agreement: 22nd August, 2026
The agreement does not contain special rights such as the right to appoint directors, a first right to share subscription on any issue of shares, or a right to restrict a change in capital structure.
What the borrower will do with the money
The funds are to be used for the borrower's working capital requirements and for purchase of land to set up a commercial manufacturing facility for infrastructure-related manufacturing activities. The products named include transmission towers, monopoles, crash barriers, octagonal poles, high mast poles, pre-fabricated structures and other allied products.
Related party angle
The update states the borrower is a wholly owned subsidiary of the company, that the transaction is a related party transaction, and that it is done at arm's length.
Where this sits in the loan book
The amount of loan outstanding as on the date of disclosure is stated as ~Rs. 17.43 crore. The update also states that this loan is in addition to the loan amount of ₹ 20 Crores extended by Vibhor Steel Tubes Limited under a loan agreement dated 25th August 2026, which was intimated to the stock exchanges.
How to read it
Money is moving from the listed company to a business it fully owns, at a stated interest rate of 9.5%, with no security and repayment on demand within a maximum of 10 years. For a shareholder, the useful checkpoints are the purpose (working capital plus land for a new infrastructure-products facility), the terms (unsecured, no security), and the cumulative amount lent, which now sits alongside the earlier ₹ 20 Crores facility.
Also from Vibhor Steel Tubes
Board approves unsecured loan of INR 5 Crores to wholly owned subsidiary Viyom Steel Infra
22 Oct 2026
Update on Investor Summit Participation by Managing Director
29 Sep 2026
More numbers
- Loan amount approvedINR 5 Crores
- Rate of interest on the loan9.5%
- Maximum repayment period10 years
- Company's shareholding in the borrower100%
- Loan outstanding as on date of disclosureRs. 17,43,40,000/-
- Earlier loan extended under agreement dated 25th August 2026₹ 20 Crores
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