Loan & Debt22 Oct 2026, 05:10 pm
Vibhor Steel Tubes Lends ₹5 Cr to Wholly Owned Subsidiary
AI Summary
Vibhor Steel Tubes Ltd has approved a loan of INR 5 Crores to its wholly owned subsidiary, Viyom Steel Infra Private Limited. The loan, executed on August 22, 2026, carries an interest rate of 9.5% and is repayable on demand, with a maximum period of 10 years. The funds will be utilized by the subsidiary for working capital requirements and the purchase of land to establish a commercial manufacturing facility for infrastructure-related products. This loan is in addition to a previous loan of ₹20 Crores extended on August 25, 2026. The transaction is considered a related party transaction but is conducted on an arm's length basis.
Key Highlights
- Vibhor Steel Tubes granted ₹5 Crore loan to subsidiary Viyom Steel Infra.
- Loan interest rate is 9.5% with a 10-year maximum repayment period.
- Funds to support subsidiary's working capital and land acquisition.
- This is in addition to a prior ₹20 Crore loan.
- Transaction is an arm's length related party loan.
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