NIMBSPROJBSENimbus Projects LtdMediumNeutral
Announced Mon, 5 Jan · 14:14 IST

Disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015-Availing of Unsecured loan facility by IITL-Nimbus, The Palm Village, a joint venture partnership firm/ subsidiary entity ....

New Credit FacilityCredit & Debt View source PDF

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Nimbus Projects Ltd informed that its board has approved an unsecured loan of Rs. 25 Crore for its subsidiary/joint venture IITL-Nimbus, The Palm Village, from Nimbus (India) Limited, an associate and promoter group company. The loan carries an interest rate of 11% per annum and a tenure of 2 years. The funds will be used by the JV for business objectives and meeting payment obligations. Since Nimbus (India) Limited is a related party (with a common director Mr. Bipin Agarwal), this is a related party transaction done at arm's length, subject to shareholder approval.

Likely market impact

This is an inter-group funding arrangement between the company's subsidiary and its promoter group entity, which may raise governance concerns for minority shareholders due to the related party nature, though it does provide the JV with working capital. Shareholders should watch for the shareholder approval outcome and monitor how efficiently the JV deploys these funds.