Autofurnish approved a secured term loan agreement worth ₹17.9 lakh with HDFC Bank Limited during its board meeting held on September 21, 2026. The company disclosed that the funds will be utilized specifically for the purchase of new machinery and equipment.

The transaction was approved by the Board of Directors pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The agreement was executed on the same date as the board meeting.

Loan Details

The secured term loan is backed by specific collateral provided by the company to the lender.

The company confirmed that HDFC Bank is not related to the promoter group or group companies in any manner. Consequently, the transaction does not fall under the category of a related-party transaction and was executed at arm's length.

Corporate Governance

The board meeting commenced at 4:45 pm and concluded at 5:30 pm. Puneet Arora, Managing Director of Autofurnish, signed the disclosure documents. The company stated it has no subsidiary companies.

What the Numbers Show

The relatively small size of the loan facility (₹17.9 lakh) suggests a targeted capital expenditure rather than a broad expansion drive. The use of hypothecation of the vehicle itself as security indicates a standard asset-backed financing structure, minimizing the impact on other corporate assets.

Autofurnish Limited has approved the acquisition of a 55% equity stake in Chhariot EMob Private Limited, marking its entry into the electric vehicle manufacturing and distribution segment.

The board of directors approved the move during its meeting held on September 4, 2026. The acquisition is structured as a cash transaction, with shares acquired at face value. Autofurnish also sanctioned an inter-corporate loan of up to ₹2.50 crore to the target entity, subject to regulatory approvals and mutual terms.

Deal Structure and Terms

The acquisition aims to expand Autofurnish’s business footprint into the e-mobility sector. Chhariot EMob is engaged in the trading, distribution, assembly, and manufacturing of two-wheeler electric vehicles, EV parts, and batteries. The target entity operates within India.

Related Party Disclosure

The filing contains conflicting disclosures regarding related party status. One section states the transaction does not fall under related party transactions, with no promoter interest. Conversely, another section confirms it is a related party transaction, noting that while Autofurnish acquires 55%, its promoters are acquiring the remaining 45% stake.

Financial Background of Target

Chhariot EMob reported nil turnover for the last three years. The acquisition allows Autofurnish to leverage the target’s existing infrastructure for EV assembly and parts manufacturing without immediate revenue integration from historical operations.