Rashtriya Chemicals and Fertilizers Limited has informed regarding Disclosure of material issue
RCF · price
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RCF's Board, at its meeting on June 20, 2025, approved an unsecured inter-corporate loan of Rs. 233 Crore to Talcher Fertilizers Limited, a joint venture company in which RCF holds a 31.85% stake. The loan has a 6-month tenure with a prepayment option after 7 days' notice, and carries an interest rate of 6-month SBI MCLR plus 0.65%, payable monthly. The transaction qualifies as a related party transaction since Talcher Fertilizers is RCF's joint venture, and the company has stated it is being done at arm's length.
This is a routine funding support to RCF's joint venture and is unlikely to materially affect shareholders. Investors should note that Rs. 233 Crore is being lent out at a market-linked rate, which could be monitored for timely repayment given Talcher's project-stage status.