Balkrishna Paper Mills to Commence Real Estate Development and Seek Inter Corporate Deposits
Balkrishna Paper Mills Limited announced, following its Board Meeting held on April 10, 2026, approvals for initiating real estate development activities and securing Inter Corporate Deposits (ICDs) from related parties.The Board of Directors approved two key actions. Firstly, the company resolved to commence the business of real estate development and allied activities, as permitted under sub-clause 3 of Clause III(A) of the Company's Memorandum of Association. Secondly, the Board authorized the availment of Inter Corporate Deposits from two related parties, subject to shareholder approval.
The proposed ICDs are structured as follows:
- From S P Finance and Trading Limited: Up to Rs. 25 Crore for Financial Year 2026-27 and up to Rs. 25 Crore for Financial Year 2027-28, payable in one or more tranches.
- From Sanchna Trading and Finance Limited: Up to Rs. 25 Crore for Financial Year 2026-27 and up to Rs. 25 Crore for Financial Year 2027-28, payable in one or more tranches.
Details on New Real Estate Business Venture
For the commencement of the real estate development and allied activities, the company noted the following details:- Industry Area: Real Estate Development and Allied Activities, which encompasses the development of residential and commercial projects.
- Expected Benefits: The company anticipates strategic diversification of its business operations, optimal utilization and monetization of existing land assets, and the creation of long-term shareholder value.
- Estimated Investment: The amount to be invested will be determined based on project feasibility, regulatory approvals, and prevailing market conditions.
Proposed Related Party Transactions
The details pertaining to the proposed Related Party Transactions (RPTs) involving ICDs are presented in the table below. Both transactions have been deemed material as the amount of ICD is more than 10% of the annual turnover, given that the company has incurred losses in the preceding three years and has negative Net worth.| Particulars | S P Finance and Trading Limited | Sanchna Trading and Finance Limited |
|---|---|---|
| Nature of Relationship | Group Company | Group Company |
| Nature of Transaction | Availing Inter Corporate Deposit (ICD) | Availing Inter Corporate Deposit (ICD) |
| Value (FY 2026-27 & FY 2027-28) | Rs. 25 Crores each, in one or more tranches | Rs. 25 Crores each, in one or more tranches |
| Rate of Interest | Up to 12% with mutual consent of both parties | Up to 12% with mutual consent of both parties |
| Repayment Schedule | One Year subject to further extension(s) by mutual consent | One Year subject to further extension(s) by mutual consent |
| Transaction Status | At Arm's length: YES; In ordinary course of business: YES | At Arm's length: YES; In ordinary course of business: YES |
| Benefit/Rationale | For meeting working Capital requirements, for day to day business activities, repayment of Debts and for carrying business of real estate development and allied activities. | For meeting working Capital requirements, for day to day business activities, repayment of Debts and for carrying business of real estate development and allied activities. |
The company indicated that for both transactions, the ICDs will be under the unsecured category.
BALKRISHNA Stock Price Movement
Today, Balkrishna Paper Mills Limited shares edged higher to close at ₹16.88, finishing the session up 1.68%. The stock saw brisk post-market activity, with 23,888 shares recorded during the trading day.Source:
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