Ask Automotive sanctions ₹100 Cr loan to subsidiary Ask Automobiles
- Ask Automotive sanctions ₹100 crore unsecured loan to subsidiary Ask Automobiles
- Interest rate set at Repo Rate +2.50% per annum for projects and working capital
- Total outstanding inter-corporate loans to subsidiary stand at ₹489.84 crore
- Transaction disclosed under SEBI Regulation 30 as an arm's length deal
- No special rights or security collateral attached to the new facility
*this image is generated using AI for illustrative purposes only.
Ask Automotive Limited has extended a ₹100 crore inter-corporate loan to its wholly owned subsidiary, Ask Automobiles Private Limited. The unsecured facility is priced at Repo Rate +2.50% per annum and supports the subsidiary’s project execution and general corporate purposes.
The listed entity disclosed the transaction on September 21, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The agreement was executed on the same date, with funds earmarked for fixed and movable asset purchases, construction, plant machinery, and working capital requirements.
Loan Structure and Terms
The loan agreement does not confer any special rights to the lender, such as director appointment or pre-emptive share subscription rights. It is classified as an arm’s length related-party transaction.
| Term | Detail |
|---|---|
| Lender | Ask Automotive Limited |
| Borrower | Ask Automobiles Private Limited |
| Amount | ₹100 crore |
| Interest Rate | Repo Rate +2.50% p.a. |
| Security | Unsecured |
| Purpose | Projects, assets, working capital |
Outstanding Exposure
As on the date of disclosure, the total outstanding loan amount lent by Ask Automotive to its subsidiary stood at ₹489.84 crore. This figure includes the newly sanctioned ₹100 crore facility alongside prior exposures.
What the Numbers Show
The total outstanding exposure of ₹489.84 crore significantly exceeds the fresh ₹100 crore sanction, indicating that the subsidiary relies heavily on internal group financing for its capital structure. With no collateral provided for this unsecured loan, the listed parent bears direct credit risk on nearly ₹490 crore of intra-group debt.
Historical Stock Returns for ASK Automotive
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.81% | -0.90% | +7.46% | +46.43% | +13.60% | +109.72% |
How will the variable interest rate structure (Repo Rate +2.50%) impact Ask Automotive's net interest income if the RBI raises rates in the coming quarters?
Given the high unsecured exposure of ₹489.84 crore, what specific financial covenants or performance milestones has the subsidiary committed to mitigate the parent company's credit risk?
Will this significant capital injection accelerate the subsidiary's EV manufacturing capacity expansion, and how might that affect Ask Automotive's market share in the near term?
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