Balkrishna Paper Mills Limited has informed the Exchange about related Party Transactions:We wish to inform you that the Board of Directors of the Company at its meeting held today, have interalia approved the following:i. To commence the business of real estate development and allied activities, as authorised under sub-clause 3 of Clause III(A) (Main Object Clause) of the Memorandum of Association of the Company; andii. To avail Inter corporate Deposits (ICDs), subject to approval of Shareholders:a. From S P Finance and Trading Limited, a related party, up to Rs.25 Crore for F.Y.2026-27 and up to Rs.25 Crore for F.Y.2027-28, both in one or more tranches; b. From Sanchna Trading and Finance Limited, a related party, up to Rs.25 Crore for F.Y.2026-27 and up to Rs.25 Crore for F.Y.2027-28, both in one or more tranches.The relevant particulars as required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended and Schedule III thereof read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 issued on July 11, 2023 and last updated on January 30, 2026 are provided in Annexure I and II hereto. The Meeting commenced at 6.25 P.M. and concluded at 7.00 P.M. Kindly take the above on record and acknowledge.
BALKRISHNA · price
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The Board of Balkrishna Paper Mills has approved entering the real estate development and allied activities business, diversifying away from its core paper manufacturing operations. The company also plans to borrow up to Rs.25 Crore each in FY2026-27 and FY2027-28 (total Rs.50 Crore per counterparty) as Inter Corporate Deposits (ICDs) from two group companies — S P Finance and Trading Limited and Sanchna Trading and Finance Limited — at interest rates up to 12% on an unsecured basis. These ICDs, combined across both parties, amount to a potential Rs.100 Crore of related party borrowing over two years, and the transactions are classified as Material Related Party Transactions requiring shareholder approval. The company disclosed that it has incurred losses in each of the preceding three years and its net worth is currently negative, which makes this financing arrangement and business pivot notable.
Shareholders should note the strategic shift into real estate and the heavy reliance on related-party funding (Rs.100 Crore potential) despite negative net worth and three years of losses — this carries both diversification upside and governance/debt-servicing risk, and the ICDs need shareholder approval before proceeding.