Disclosure of the said agreement is attached herewith.
Awaiting price reaction for this filing.
Alka India Limited has entered into a loan agreement on 23rd March 2026 with its Promoter and Non-Executive Director, Mr. Jatinbhai Ramanbhai Patel, to borrow up to Rs. 100 crore as an unsecured loan that is convertible into equity shares at a later date. The loan is interest-free, making it a related-party transaction not at arm's length, and was approved by the board on 27th February 2026 and by shareholders at the AGM on 23rd March 2026. Funds will be disbursed in one or more tranches as needed. The lender currently holds 2,50,000 shares (Rs. 2.5 lakh), representing 5% of the company's equity share capital.
This is a positive signal for the company as it secures Rs. 100 crore of funding from a promoter at no interest cost, strengthening liquidity without debt-servicing burden. However, the future conversion of this loan into equity will dilute existing shareholders, and the non-arm's-length nature highlights the promoter's continued commitment to the business.