Alka India Limited Secures Rs 100 Crore Convertible Loan from Promoter-Director
Alka India Limited has secured a Rs 100 crore unsecured, interest-free loan from promoter-director Mr. Jatinbhai Ramanbhai Patel through an agreement dated 23rd March, 2026. The loan is convertible into equity shares at a later date and received board approval on 27th February, 2026 and shareholder approval on 23rd March 2026. Mr. Patel currently holds 5.00% equity stake in the company. The transaction qualifies as a related party transaction under SEBI regulations but is not conducted at arm's length due to its interest-free nature.
*this image is generated using AI for illustrative purposes only.
Alka India Limited has announced a significant financial arrangement with its promoter-director, securing a substantial convertible loan facility that could impact the company's capital structure in the future.
Loan Agreement Details
The company entered into a loan agreement dated 23rd March, 2026 with Mr. Jatinbhai Ramanbhai Patel, who serves as a Non-Executive Director and promoter of the company. The agreement involves an unsecured loan facility worth Rs 100,00,00,000 (Rupees One Hundred Crores Only), which carries the option to convert into equity shares at a later date.
| Parameter: | Details |
|---|---|
| Loan Amount: | Rs 100,00,00,000 (Rupees One Hundred Crores) |
| Lender: | Mr. Jatinbhai Ramanbhai Patel |
| Nature: | Unsecured, Interest-free |
| Conversion Feature: | Convertible into equity shares |
| Agreement Date: | 23rd March, 2026 |
Approval Process and Governance
The loan arrangement received comprehensive approval through the company's governance structure. The board of directors approved the transaction in their meeting held on 27th February, 2026, followed by shareholder approval in the Annual General Meeting conducted on 23rd March 2026.
The funds will be disbursed in one or more tranches as and when required, based on mutual agreement between the parties, through banking channels into the company's designated bank account.
Promoter Details and Related Party Considerations
Mr. Jatinbhai Ramanbhai Patel currently holds 2,50,000 shares of Re. 1 each, aggregating to Rs 2,50,000 (Rupees Two Lakhs Fifty Thousand Only), representing 5.00% of the company's equity share capital.
| Aspect: | Information |
|---|---|
| Current Shareholding: | 2,50,000 shares (5.00% equity) |
| Share Value: | Rs 2,50,000 |
| Relationship: | Promoter and Non-Executive Director |
| Related Party Transaction: | Yes, not at arm's length |
Regulatory Compliance
The company has disclosed this transaction under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transaction falls within the purview of related party transactions as per the proviso to Regulation 2 (1) (zc) of SEBI regulations. Notably, the transaction is not conducted at arm's length due to the interest-free nature of the loan.
The disclosure indicates that the loan agreement does not grant any special rights to the lender, such as the right to appoint directors, first right to share subscription, or rights to restrict changes in capital structure. Additionally, the company has stated that there will be no impact on management or control of the listed entity from this arrangement.
What conversion price will be applied if Mr. Patel decides to convert the Rs 100 crore loan into equity shares?
How will Alka India's debt-to-equity ratio and financial leverage change if the full loan amount is converted to equity?
What specific business expansion or capital expenditure plans does Alka India have for utilizing this Rs 100 crore facility?
19
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
