Ravindra Energy Limited has entered into a Rs 100 crore term loan agreement with Tata Capital Limited. The capital is earmarked for investment into its joint venture, Energy In Motion Limited. The loan carries an interest rate of 12.75% per annum and is backed by promoter guarantees and a share pledge.
Ravindra Energy Secures Rs 100 Crore Term Loan Facility
Loan Amount: Rs 100 Crore
Interest Rate: 12.75% Per Annum
Reader Takeaway: The capital infusion targets subsidiary growth, though high interest rates and promoter-backed collateral warrant close monitoring.
What just happened
Ravindra Energy Limited has formalized a loan agreement with Tata Capital Limited to secure a term facility of up to Rs 100 crore. The funds are designated to support the operations of Energy In Motion Limited, a jointly controlled entity of the company. The loan, executed on November 5, 2026, features a floating interest rate of 12.75% per annum, payable on a monthly basis.
Why this matters
This debt facility provides the necessary liquidity for the company to fuel its renewable energy project initiatives through Energy In Motion. By directing these funds into its joint venture or its subsidiaries, Ravindra Energy aims to accelerate project development. However, the cost of capital at 12.75% implies a significant interest burden that will impact the company's P&L statement in the coming quarters.
Risks to watch
Investors should note the extensive security structure placed on this loan. The facility is backed by a first pari passu charge on movable assets and project-specific cash flows, such as PM KUSUM subsidies. Furthermore, the loan is secured by personal guarantees from promoter Narendra Murkumbi and corporate guarantees from Khandepar Investments Private Limited. Critically, the agreement includes a pledge of promoter shareholding with 1x cover. Additionally, Tata Capital holds the right to appoint a nominee director to the board in the event of a payment default, signaling strict governance oversight.
What to track next
Shareholders should monitor the operational progress of Energy In Motion Limited, as the success of these projects is vital for servicing the new debt. Future filings should be scrutinized for any changes in debt-to-equity ratios and the timely realization of project subsidies that serve as collateral for this facility.