PRAXIS · price
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Praxis Home Retail Ltd has entered into a loan agreement with CMS IT Services Private Limited for an unsecured inter-corporate loan of Rs. 5.5 crores. The loan carries an interest rate of 11% per annum and is valid for 6 months, with the possibility of extension by mutual written agreement. The funds will be used for working capital requirements and general corporate purposes. The transaction is not classified as a related party transaction, and no security has been provided by the borrower.
The company is taking on additional debt of Rs. 5.5 crores at 11% interest, which will increase its financial obligations. This may have a minor negative impact on shareholder value due to interest costs, though the short tenure limits long-term exposure.