Outcome of the Board Meeting i.e. 12.11.2025.
PML · price
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The board of Paul Merchants Ltd, at its meeting on November 12, 2025, approved granting a loan of Rs. 60 Crores to its wholly-owned subsidiary PML Realtors Private Limited (PRPL). This is over and above existing loans and working capital already extended to PRPL. The interest rate is set at 10.5% per annum, benchmarked to the nearest government security yield for the loan's tenor, and is subject to quarterly review. The transaction is being treated as on an arm's length basis, with a certificate from the statutory auditors, even though it is not classified as a related-party transaction under Section 188 of the Companies Act.
For shareholders, this means the parent company is committing an additional Rs. 60 Crores into its subsidiary, increasing exposure to PRPL's business outcomes. The loan earns interest income at a reasonable rate, but recovery depends entirely on the subsidiary's performance.