Board approves unsecured loan of INR 5 Crores to wholly owned subsidiary Viyom Steel Infra
Board approved an unsecured loan of INR 5 Crores to Viyom Steel Infra, its 100% subsidiary, at 9.5% interest, repayable on demand within a maximum of 10 years.
By ScoutQuest · · 2 min read
- Loan Amount
- INR 5 Crores
- Interest Rate
- 9.5%
- Loan Outstanding as on date of disclosure
- ~Rs. 17.43 crore
What the board approved
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. The lender is Vibhor Steel Tubes Limited and the borrower is Viyom Steel Infra Private Limited. The loan is unsecured, and no security has been provided for it.
The key numbers
- Amount of loan: INR 5 Crores
- Rate of interest: 9.5%
- Repayable on demand, subject to a maximum period of 10 years
- The company holds 100% of the borrower's shares
- Amount of loan outstanding as on the date of disclosure: ~Rs. 17.43 crore
- This loan is in addition to the loan amount of ₹ 20 Crores extended under a loan agreement dated 25th August 2026
Where the money is meant to go
As stated in the update, the borrower will use the facility amount for its 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 borrower is a wholly owned subsidiary of the company.
- The transaction is a related party transaction and is at arm's length basis.
- There is no issue of shares to the party under this arrangement.
- The agreement does not contain terms on special rights such as appointing directors, a first right to share subscription in case of issue of shares, or a right to restrict any change in capital structure.
What a retail investor can take from this
A listed company is lending INR 5 Crores of money to a business it owns entirely, at an interest rate of 9.5%, on an unsecured basis, repayable on demand within a maximum of 10 years. Because the borrower is a wholly owned subsidiary, the business it builds stays within the group. The stated use is working capital and land for a new manufacturing facility for infrastructure products — a capacity-building step rather than a one-off expense. The disclosure also shows the loan outstanding in this relationship at ~Rs. 17.43 crore, which follows an earlier ₹ 20 Crores facility extended under an agreement dated 25th August 2026.
Also from Vibhor Steel Tubes
Board approves grant of INR 5 Crores unsecured loan to wholly owned subsidiary
22 Oct 2026
Update on Investor Summit Participation by Managing Director
29 Sep 2026
More numbers
- Size of loan agreementINR 5 Crores
- Rate of interest9.5%
- Maximum repayment period10 years
- Company's shareholding in the borrower100%
- Amount of loan outstanding as on date of disclosureRs. 17,43,40,000/-
- Earlier loan extended under agreement dated 25th August 2026₹ 20 Crores
Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.