United Foodbrands Limited has informed the Exchange about Execution of Loan Agreement with Red Apple Kitchen Consultancy Private Limited, a Subsidiary of the Company
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United Foodbrands Limited (formerly Barbeque-Nation Hospitality Limited) has executed a loan agreement with its subsidiary, Red Apple Kitchen Consultancy Private Limited, in which it holds an 89.05% stake. The company will extend an unsecured loan of ₹10 Crores to Red Apple to fund its capital expenditure and business expansion. The loan has a 4-year tenor with an interest rate linked to the company's average bank rate plus 0.5%, subject to a floor based on the prevailing government security yield. As Red Apple is a subsidiary, the transaction qualifies as a related party transaction, but it has been carried out at arm's length. Promoters and promoter group have no interest in Red Apple or in this transaction, and no special rights have been granted.
This is an internal capital deployment to a majority-owned subsidiary (89.05%) to support its growth, so direct impact on the listed entity is limited. However, ₹10 Crores is a meaningful sum being tied up in the subsidiary, which could marginally affect the parent company's liquidity until Red Apple repays. The arm's-length pricing and lack of promoter involvement reduce governance concerns for minority shareholders.