AAA Technologies Approves Rs 6 Crore Inter-Corporate Loan to TSI

Loan Amount: Rs 6 crore | Interest Rate: 12% per annum

Reader Takeaway: AAA Technologies extends credit to TSI for working capital, backed by future equity pledge provisions.

What just happened

The Board of Directors at AAA Technologies has formally approved an inter-corporate deposit/loan facility of up to Rs 6 crore for Transaction Solutions International (India) Private Limited (TSI). This facility is structured to assist TSI with working capital requirements, debt servicing, and general business operations.

Why this matters

For investors, this transaction marks a strategic deployment of capital into an external entity with a 12% annual interest yield. The loan terms include a provision for conversion into equity, giving AAA Technologies potential future ownership stake in the borrower, subject to regulatory compliance and valuation norms. Importantly, the company has clarified that this is not a related-party transaction.

Terms and Security

The loan is payable on demand with a maximum tenure of one year. While the facility is initially unsecured, the agreement incorporates several protective covenants:

• Findi Limited (Australia) acts as a confirming party to the deal.
• Findi Limited has issued a non-disposal undertaking, restricting the sale or encumbrance of its existing shareholding in TSI.
• A share pledge agreement is planned to be executed over Findi Limited’s equity in TSI, contingent upon necessary RBI approvals.

What to track next

Investors should monitor the progress of the regulatory filings required for the share pledge mechanism and the timely receipt of interest payments, which are scheduled to be paid on a quarterly basis.