The disclosure for borrowing an amount of Rs. 100 Crores has been attached herewith.
Awaiting price reaction for this filing.
PAE Ltd has entered into a loan agreement dated 23rd March 2026 with Mr. Jatinbhai Ramanbhai Patel, who is both a Promoter and Non-Executive Director of the company, to borrow up to Rs. 100 Crores as an unsecured loan. The loan is interest-free and convertible into equity shares of the company at a later date, subject to shareholder approval. The agreement was approved by the board on 6th February 2026 and by shareholders at the AGM on 7th March 2026. Funds will be disbursed in one or more tranches via banking channels as needed. The transaction qualifies as a related party transaction and is not at arm's length because no interest is being charged.
This borrowing gives the company Rs. 100 Crores of interest-free funding from a promoter, which is a positive for short-term liquidity. However, the future conversion into equity could lead to dilution for existing shareholders and increases the promoter's stake beyond the current 5%.