3P Land Holdings Limited has announced a postal ballot to transition its unsecured Inter-Corporate Deposit (ICD) exposure with Biodegradable Products India Limited (BPIL) to a secured status. The company proposes to cap its exposure at Rs 40 crore with an interest rate of 9% to 12% per annum, backed by a joint mortgage on BPIL’s 22.93-acre land in Pune. The voting process will run from September 23 to October 22, 2026, aimed at enhancing protection for the company’s capital.
3P Land Holdings Seeks Secured Status for Rs 40 Crore ICD Exposure
Principal Exposure: Rs 40 Crore | Interest Range: 9% to 12% p.a.
Reader Takeaway: The shift to a secured loan structure via Pune land mortgage aims to reduce credit risk for shareholders.
What just happened
3P Land Holdings Limited has launched a postal ballot to secure shareholder approval for modifying its Inter-Corporate Deposit (ICD) arrangement with Biodegradable Products India Limited (BPIL). The proposal seeks to transform current unsecured lending into a secured debt instrument by establishing a joint mortgage over BPIL’s property in Chande, Pune.
Why this matters
The company aims to protect its capital by securing its lending against a 22.93-acre land parcel. This move is significant as BPIL is a promoter-group entity and currently carries a negative net worth, making the collateral a vital risk-mitigation tool for 3P Land Holdings' investors.
Transaction Terms
The revolving ICD facility is capped at an aggregate outstanding principal of Rs 40 crore. The arrangement spans five financial years, from FY 2026-27 to FY 2030-31, with repayment terms set at six years from the date of each disbursement.
Security and Mortgage Details
The security will be held on a pari passu basis alongside other related-party lenders, including AMJ Land Holdings and Thacker and Company. The total obligations secured under this deed are capped at Rs 200 crore collectively, with AMJ Land Holdings serving as the lead mortgagee for the Pune-based site.
What to track next
Shareholders should monitor the e-voting results, which are scheduled for announcement on or before October 24, 2026. The effectiveness of this security structure will depend on the valuation and legal enforceability of the mortgage over the specified Pune land holdings.