We wish to inform you that Mehai Technology Limited has entered Loan Agreement with its subsidiary company Mehai Aqua Private Limited.
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Awaiting price reaction for this filing.
Mehai Technology Limited (MTL) has entered into an unsecured loan agreement with its 95.10%-owned subsidiary, Mehai Aqua Private Limited (MAPL). The facility is for up to ₹910.60 Lakhs (₹9.10 Crores), disbursable in one or more tranches, carrying an interest of 8.5% per annum and repayable in monthly instalments over a maximum of 5 years. The purpose of the loan is to enable MAPL to repay or prepay its existing secured loans from UCO Bank. The transaction is classified as a related party transaction and has been carried out at arm's length. No special rights such as board appointments or share subscription privileges are attached to the agreement.
This is an intra-group loan where MTL is deploying ~₹9.1 Cr of its funds into its subsidiary, earning 8.5% interest, to help the subsidiary refinance its bank borrowings. For shareholders, it signals capital support being extended within the group; the impact on stock price is likely neutral unless there are concerns about the subsidiary's ability to repay the UCO Bank debt on time.