Please find attached herewith the intimation regarding execution of facility agreement on 03.07.2025 from grant of Additional Inter Corporate Loan of Rs 30.00 Cr to Deccan Gold Mines Limited
Awaiting price reaction for this filing.
Godawari Power & Ispat Limited (GPIL) has executed a facility agreement on 03.07.2025 to grant an additional Inter Corporate Loan of Rs 30 crore to Deccan Gold Mines Limited (DGML) from its surplus funds. This brings the total loan extended to DGML to Rs 80 crore (including the earlier Rs 50 crore). The loan carries an interest rate of 12% per annum (monthly compounding, payable quarterly) with a 36-month tenure. The proceeds will fund DGML's acquisition of equity in Geomysore Services (India) Private Limited (Rs 15 crore) and development of the Altyn Tor Gold Project in Kyrgyzstan (Rs 15 crore), with the rest for general corporate purposes. The loan is secured by a pledge of shares in Geomysore Services. A promoter group company, Hira Infra-tek, holds a 9.95% stake in DGML, but the transaction is not classified as a related party transaction.
The deployment of an additional Rs 30 crore as an inter-corporate loan means surplus cash is tied up in a single borrower, increasing GPIL's exposure to DGML to Rs 80 crore. While the 12% interest rate is attractive, investors should note the concentrated credit risk and the fact that a promoter group entity has a separate stake in the same borrower.