Magnum Ventures Secures Rs 60 Crore Term Loan From Tata Capital

Magnum Ventures Limited has entered into a formal term loan agreement with Tata Capital Limited (TCL) for a total facility of Rs 60 crore. The sanction letter was issued on August 29, 2026, marking a significant step in the company's capital management strategy.

Reader Takeaway: The loan supports hotel infrastructure growth and optimizes existing debt, with a potential 75 bps interest rate reduction.

What just happened

The company finalized a Rs 60 crore credit facility with Tata Capital. The loan carries an interest rate of 12.00% p.a. (floating), calculated as TCL’s Long Term Prime Lending Rate of 8.75% plus a 3.25% spread. The agreement spans a tenure of 135 months, with monthly interest payments and quarterly principal repayments.

Why this matters

The capital allocation is strategic, focusing on reducing higher-cost debt and funding operational upgrades. The funds are divided as follows:

• Hotel Upgradation Capex: Rs 25 crore
• Unsecured Loan Repayment: Rs 20 crore
• Partial TFCI Loan Repayment: Rs 10 crore
• General Corporate Purposes: Rs 5 crore

What changes now

The company expects to lower its interest burden post-demerger of its hotel division, provided performance and security conditions are met. Under these terms, the interest rate could see a reduction of 75 basis points. Disbursement is split into two tranches: Tranche I (Rs 10 crore) for immediate debt reduction and Tranche II (Rs 30 crore) designated for expansion and general corporate use.

Security and Collateral

The loan is secured by a first pari passu charge on the hotel division's current and future assets. Additionally, the company has provided a first pari passu mortgage on its Sahibabad industrial property and a non-disposable undertaking on promoter shares, supported by personal guarantees from key promoters, including Abhay Jain and Parv Jain.