Enclosed herewith Letter of Intent received for Term Loan under SPEED
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Awaiting price reaction for this filing.
Sanmit Infra Ltd has received a Letter of Intent from SIDBI (Small Industries Development Bank of India) for a term loan of Rs. 116 lakhs under the SPEED (Scheme for Purchase of Equipment for Enterprises Development) program. The loan will be used to purchase equipment from OEMs (original equipment manufacturers) and carries an interest rate of 8.85% per annum. Repayment is structured as 59 monthly installments after a 1-month moratorium from first disbursement. The facility is secured by hypothecation of equipment, a Rs. 29 lakh fixed deposit with SIDBI, and personal guarantees from four promoter-directors. SIDBI can review and reset the interest rate after 3 years, and the sanction will lapse if the first disbursement is not made within 3 months.
This is a small new credit facility (Rs. 116 lakhs) supporting equipment purchase, which signals modest capacity expansion or modernization. The personal guarantees from all four promoter-directors indicate a high level of promoter commitment but also expose them personally to the debt. Impact on share price is likely limited given the small size of the loan relative to the company.