Vibhor Steel Tubes Approves INR 20 Crore Loan to Wholly Owned Subsidiary
Vibhor Steel Tubes Limited has approved the grant of a loan facility to its wholly owned subsidiary, Viyom Steel Infra Private Limited. The Board of Directors approved the transaction on August 25, 2026.The transaction involves Vibhor Steel Tubes Limited serving as the lender and Viyom Steel Infra Private Limited acting as the borrower. The Company holds 100% shares of the Borrower. The loan agreement was executed on August 25, 2026, and the transaction has been confirmed to be at arm’s length.
The facility amount sanctioned is INR 20 Crore. Key terms of the agreement include an interest rate of 9.5%. The loan is unsecured, and the repayment is structured as Repayable on Demand, subject to a maximum period of 10 years.
Viyom Steel Infra Private Limited plans to utilize the facility amount to meet its working capital requirements. Additionally, the funds are designated for the purchase of land to establish a commercial manufacturing facility. This new facility will focus on infrastructure related manufacturing activities, including the production of transmission towers, monopoles, crash barriers, octagonal poles, high mast poles, and pre-fabricated structures.
The details of the loan agreement and the involved parties are summarized below:
| Detail | |
|---|---|
| Lender | Vibhor Steel Tubes Limited |
| Borrower | Viyom Steel Infra Private Limited |
| Nature of Loan | Unsecured |
| Amount of Loan | INR 20 Crore |
| Interest Rate | 9.5% |
| Maximum Repayment Period | 10 years |
The transaction includes the parent company maintaining 100% shareholding in the subsidiary, Viyom Steel Infra Private Limited.
VSTL Stock Price Movement
Shares of Vibhor Steel Tubes Limited slipped by 0.25% to settle at ₹111.50 today. The stock traded within a narrow range, finding a low of ₹111.25 and peaking at ₹113.75 during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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