Jaykay Enterprises has executed a loan agreement with its wholly owned subsidiary, JK Defence & Aerospace Limited, for an amount of up to ₹100 crore. The transaction, structured as an unsecured inter-corporate deposit, carries an interest rate of 10% per annum.

The agreement was signed on October 8, 2026. The funds are designated for use by the subsidiary in the defence and aerospace sector. Disbursement will occur in one or more tranches, rather than as a single lump sum payment.

Key terms of the loan agreement

The disclosure highlights that the loan is unsecured, meaning no collateral has been pledged by the borrower. The tenure of the agreement is fixed at three years. Repayment of the principal along with accrued interest will follow terms mutually agreed upon by both parties.

Nature of the transaction

The loan constitutes a related-party transaction between the parent company and its subsidiary. Jaykay Enterprises holds 100% equity in JK Defence & Aerospace. The company stated that the transaction is conducted on an arm's length basis. As of the date of the agreement, there were no outstanding loans from Jaykay to JK Defence excluding this new facility.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The details have been hosted on the company’s website for public record.

Jaykay Enterprises Limited acquired 25,00,000 preference shares in its wholly owned subsidiary, JK Defence & Aerospace Limited, for ₹25 crore on October 5, 2026. This transaction utilizes proceeds from a prior capital raise to fund the subsidiary's operations in the defence and aerospace sector.

The acquisition involved preference shares with a face value of ₹100 each. This move follows the variation in objects of utilization of rights issue proceeds, which was approved by shareholders. The funds are intended for the subsidiary's operations, which currently have nil turnover as they have yet to commence business activities.

Transaction Details and Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Although JK Defence is a related party as a wholly owned subsidiary, the company stated that the acquisition does not fall within the definition of a related party transaction under the Companies Act, 2013 or SEBI regulations.

The consideration for the shares was paid entirely in cash. Following this acquisition, Jaykay Enterprises continues to hold 100% of the paid-up share capital of JK Defence, with no change in ultimate shareholding structure. The company also noted that no governmental or regulatory approvals were required for this specific acquisition.

Subsidiary Profile and Financials

JK Defence & Aerospace Limited was incorporated on July 3, 2023. The entity operates in the defence and aerospace sector, focusing on manufacturing and trading defence and aerospace equipment. Its registered office is located in New Delhi. The subsidiary has not commenced operations and reported nil turnover.

What the Numbers Show

The investment amount of ₹25 crore represents a significant capital infusion into a pre-revenue entity. With JK Defence reporting nil turnover, this capital injection is strictly for initial setup, infrastructure development, or operational scaling rather than covering working capital needs based on current revenue levels. The scale of investment relative to the subsidiary's stage suggests a strategic focus on establishing long-term capabilities in the defence sector.