Worth Peripherals Limited has informed the Exchange about Agreements
WORTHPERI · price
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Worth Peripherals Limited's board, at a meeting held on June 14, 2025, approved an unsecured inter-corporate loan of Rs. 50 crore to its wholly-owned subsidiary, Worth Wellness Private Limited. The loan will be disbursed in one or more tranches and is intended to fund the subsidiary's day-to-day business operations. Key terms include a 3-year tenure (extendable by mutual agreement), interest charged at prevailing RBI yield rates, and no security provided. The transaction qualifies as a related party transaction since the subsidiary is 100% owned by the company, but it has been carried out at arm's length. Total outstanding loan amount as on the date of disclosure stands at Nil.
For shareholders, this represents a deployment of Rs. 50 crore into the company's own wholly-owned subsidiary rather than external lending, so any returns (or risks) ultimately flow back to the parent. The move signals the management is funding growth or working capital needs of its subsidiary, which could be neutral to mildly positive if the subsidiary generates good returns, though it does lock up capital for 3 years.