GNG Electronics Limited has informed the Exchange about the execution of Supplemental Agreement with Kotak Mahindra Bank Ltd
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GNG Electronics Limited has signed a Supplemental Agreement with Kotak Mahindra Bank on March 16, 2026, modifying its existing Master Facility Agreement dated July 26, 2024. The total working capital facility limit has been enhanced from Rs. 51 crore to Rs. 75 crore — a Rs. 24 crore (~47%) increase — with added flexibility for interchangeability between various sub-facilities. The funds will be used to meet the company's working capital needs. Security is provided through a first pari passu hypothecation charge on all existing and future receivables and current assets. The current outstanding amount under the facility stands at NIL, and there are no related party concerns, no equity dilution, and no restrictive covenants such as board appointment rights.
This is a positive signal — the bank is willing to expand credit limits for GNG Electronics, indicating confidence in the business. It gives the company meaningful additional working capital headroom to fund growth, though the hypothecation on receivables means future cash flows are partially encumbered.