Intimation under Regulation 30 of the SEBI (LODR) regulations 2025
PML · price
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Paul Merchants Ltd's Board, at a meeting held on February 12, 2026, approved an aggregate term loan limit of Rs. 100 Crores to its wholly-owned subsidiary Paul Merchants Realtors Private Limited (PMRPL), in addition to existing loans and working capital already extended. The interest rate is set at 11.00% per annum, benchmarked to the prevailing Government Security yield closest to the loan tenor, and is subject to quarterly review. The loan carries a maximum tenure of 3 years, with repayment terms to be finalised by the Board or its Executive Committee. The transaction is being done on an arm's length basis, with a certificate from the statutory auditors confirming the same. Directors Sh. Sat Paul Bansal and Sh. Rajneesh Bansal serve on the boards of both companies.
This deployment of up to Rs. 100 Crores into the wholly-owned subsidiary exposes Paul Merchants Ltd to that full loan amount as risk, while offering potential interest income at ~11% p.a. Shareholders should monitor the subsidiary's use of funds and repayment capability, as the parent's balance sheet is directly linked to PMRPL's business performance.