Praxis Home Retail Limited has informed the Exchange about Loan Agreement
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Praxis Home Retail Limited has entered into a loan agreement with CMS IT Services Private Limited to avail 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 loan is unsecured with no security provided by the company.
The company is taking on new debt of Rs. 5.5 crore at 11% interest to meet working capital needs. This indicates the company is actively seeking external liquidity, though the relatively short 6-month tenure and high interest rate suggest it may be bridge financing. Shareholders should monitor whether this signals ongoing cash flow pressures.