Godawari Power & Ispat Limited has disclosed that its subsidiary, Hira Ferro Alloys Limited (HFAL), has executed a facility agreement for an inter-corporate loan of ₹20.00 Crore. The loan is provided from HFAL’s surplus funds to Deccan Gold Mines Limited (DGML), a company where GPIL holds significant equity. The loan is intended to finance the completion and development of the Altyn Tor Gold Project. The repayment is due by October 31, 2026, with an interest rate of 12% per annum.
Inter-Corporate Loan Executed
Godawari Power & Ispat Limited (GPIL) has announced a significant financial transaction involving its subsidiary, Hira Ferro Alloys Limited (HFAL). HFAL has entered into a Facility Agreement to provide an inter-corporate loan amounting to ₹20.00 Crore. This loan is being disbursed from the surplus funds available with HFAL.
Loan Recipient and Purpose
The beneficiary of this loan is Deccan Gold Mines Limited (DGML). The funds are earmarked for the primary purpose of financing the completion and development of the Altyn Tor Gold Project. This project is being undertaken by Avelum Partner LLC, a subsidiary of DGML, located in the Kyrgyz Republic. The disclosure highlights the strategic financial support provided to related entities within the group’s broader operational framework.
Key Loan Terms
The loan agreement specifies a tenure of repayment on or before October 31, 2026, and it can be repaid in one or more tranches. An interest rate of 12% per annum will be applied to the loan amount. As security for the loan, 2,50,000 equity shares of Geomysore Services (India) Private Limited, held by the borrower (DGML), have been pledged.
Related Parties and Shareholding
The announcement also details the relationship between the parties involved. Hira Ferro Alloys Limited is a subsidiary of GPIL and part of the promoter group. Deccan Gold Mines Limited is the borrower. While HFAL does not hold direct shares in DGML, GPIL itself holds 4,75,537 equity shares of Deccan Gold Mines Limited. Additionally, Hira Infra-Tek Limited, also part of the promoter group of GPIL, holds 7.99% equity in the borrower company and a 26% stake in Avellum Partner LLC, indicating a complex web of inter-company relationships and investments.
Source: BSE
