Godawari Power And Ispat limited has informed the Exchange about Execution of Facility Agreement for grant of additional Inter Corporate Loan of Rs. 30 Crore to Deccan Gold Mines Limited (DGML).
GPIL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Godawari Power and Ispat Limited (GPIL) has executed a Facility Agreement to lend an additional Rs. 30 Crore to Deccan Gold Mines Limited (DGML) from its surplus funds, taking the total loan extended to DGML to Rs. 80 Crore. The loan carries an interest rate of 12% per annum with monthly compounding and quarterly repayment, and has a tenure of 36 months. Of the Rs. 30 Crore, Rs. 15 Crore will be used by DGML to acquire 93,750 equity shares in Geomysore Services (India) Private Limited at Rs. 1,600 per share, and the remaining Rs. 15 Crore will fund the Altyn Tor Gold Project in Kyrgyzstan and general corporate purposes. The loan is secured by a pledge of these Geomysore shares valued at around Rs. 15 Crore, along with the existing pledge on 4,14,603 equity shares of Geomysore that secures the original Rs. 50 Crore loan. Hira Infra-tek Limited, a promoter group company of GPIL, holds a 9.95% stake in DGML and a 10% stake in Avellum Partner LLC, though the transaction is confirmed as not being a related party transaction.
Shareholders should note that GPIL is deploying Rs. 30 Crore of its surplus cash into a higher-yielding inter-corporate loan (12% interest) rather than keeping it idle, which is mildly positive for treasury returns. The loan is backed by share pledges and represents a continued exposure to a single borrower now totalling Rs. 80 Crore, so investors may want to monitor concentration risk and the progress of the underlying gold mining projects.