ASK Automotive Limited has executed a loan agreement with its wholly owned subsidiary, ASK Automobiles Private Limited, for an amount of ₹100 Crore. This inter-corporate loan is an unsecured facility and is intended to fund the subsidiary’s various projects and general corporate purposes. The agreement was executed on September 21, 2026, and the current outstanding loan amount as of this disclosure is ₹489.84 Crore.
Inter-Corporate Loan Agreement Executed
ASK Automotive Limited has announced the execution of a loan agreement with its wholly owned subsidiary, ASK Automobiles Private Limited. This transaction, classified as an inter-corporate loan, is a significant financial arrangement between the parent company and its subsidiary. The agreement was officially entered into on September 21, 2026.
Loan Details and Purpose
The newly sanctioned loan amount is ₹100 Crore (Rupees Hundred Crore Only). This facility is unsecured, meaning no specific assets are pledged as collateral. The loan’s purpose is multifaceted, intended to support ASK Automobiles Private Limited’s various projects and general corporate requirements. This includes funding for the purchase of fixed and current assets, construction of buildings, acquisition of plants and machinery, and meeting working capital needs.
Subsidiary Relationship and Terms
ASK Automobiles Private Limited is a 100% wholly owned subsidiary of ASK Automotive Limited, confirming a close financial and operational relationship. The interest rate for this loan facility has been set at Repo Rate + 2.50% p.a. The tenure of the loan is to be determined as per the specific loan agreement. Notably, no special rights, such as the right to appoint directors or pre-emptive rights on share subscription, have been conferred upon ASK Automotive Limited as part of this loan agreement. The transaction is considered to be at an arm’s length basis.
Outstanding Loan Amount
As of the date of disclosure, the total outstanding loan amount from ASK Automotive Limited to its subsidiary, including this new sanction and any previous amounts, stands at ₹489.84 Crore. This substantial figure highlights the ongoing financial support provided by the parent company to its subsidiary for its growth and operational activities.
Source: BSE
