Tinna Rubber And Infrastructure Limited has remitted the first tranche of a loan amounting to USD 1,00,000, equivalent to INR 95,26,500, to its joint venture in South Africa, Mbodla Investments (Pty) Ltd. The disbursement, completed on August 08, 2026, marks the initial drawdown under a broader unsecured term loan facility capped at USD 1,000,000. The funds are intended to meet the borrower’s capital expenditure and working capital requirements, supporting the operational expansion of the Indian company’s 49%-stake venture in the South African market.

The transaction was disclosed to the Bombay Stock Exchange and the National Stock Exchange of India Ltd on August 08, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule III. The disclosure also adheres to SEBI Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Sanjay Kumar Rawat, Company Secretary of Tinna Rubber And Infrastructure Limited, signed the intimation, confirming that necessary permissions from concerned regulatory authorities were obtained prior to the remittance.

Loan Structure and Terms

The loan agreement between Tinna Rubber And Infrastructure Limited (Lender) and Mbodla Investments (Pty) Ltd (Borrower) was executed on July 10, 2026. The facility is structured as an unsecured term loan with a tenure extending up to June 30, 2031. Key financial terms include a floating interest rate calculated as the 6-month Secured Overnight Financing Rate (SOFM) plus a spread of 5% per annum. As of the filing date, this equates to an interest rate of 8.68% (3.68% SOFM + 5% spread), which is reset semi-annually on March 31 and September 30 each year.

Repayment of the principal will commence after a moratorium period of one year from the date of the first disbursement. The outstanding principal will be repaid in 16 equal quarterly instalments. The agreement permits prepayment of the whole or any part of the outstanding loan amount, along with accrued interest, without any prepayment penalty. Additionally, Tinna Rubber And Infrastructure Limited retains the option to convert the outstanding loan or any portion of it into equity at the face value of Ordinary shares of Rand 1 each.

Strategic Context

The loan supports the financial health of Mbodla Investments, a key entity in Tinna Rubber’s international footprint. By providing unsecured funding, Tinna Rubber demonstrates confidence in the joint venture’s ability to service debt through its operations. The inclusion of an equity conversion option provides flexibility for Tinna Rubber to increase its ownership stake in the future if market conditions warrant, without requiring immediate additional cash outlay. The arm’s length nature of the transaction ensures compliance with related-party transaction norms, safeguarding shareholder interests while facilitating cross-border operational support.

Tinna Rubber and Infrastructure Limited has announced the completion of all requisite registrations for its wholly owned subsidiary, Tinna Rubber Arabia Ltd, in Saudi Arabia, and has simultaneously infused the first tranche of investment into the entity. The company disclosed this development via an intimation filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, dated August 05, 2026.

First Tranche Investment Details

As part of its planned expansion into Saudi Arabia and other Middle East countries, Tinna Rubber and Infrastructure has subscribed to 50 shares of Tinna Rubber Arabia Ltd at SAR 6,800 per share, amounting to a total investment of SAR 3,40,000, equivalent to approximately INR 87,31,164. The company has stated that the overall funds to be infused into the subsidiary will not exceed INR 15,00,00,000 (Rupees Fifteen Crores Only), to be deployed in one or more tranches.

The key details of this investment, as disclosed in the regulatory filing, are summarised below:

Business Objective and Industry

Tinna Rubber Arabia Ltd operates in the collection and shredding of waste tyres and material recovery segment. The subsidiary's primary business involves the processing and recycling of old used tyre scrap to produce crumb rubber, steel scrap, and other value-added products. The proposed capital expenditure of approximately INR 15 Crores is intended to increase the source of raw material at economical prices and to expand the company's manufacturing base in the region.

Related Party and Regulatory Disclosures

As a wholly owned subsidiary, Tinna Rubber Arabia Ltd is classified as a related party of Tinna Rubber and Infrastructure Limited. The promoter and promoter group do not hold any interest in the entity beyond the company's ownership as described above. No governmental or regulatory approvals are required for this acquisition, and no indicative time period for completion of the acquisition has been specified. The disclosure has been made in compliance with SEBI Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

This investment marks a significant step in Tinna Rubber and Infrastructure's strategy to establish a manufacturing and recycling presence in Saudi Arabia, leveraging the region's growing demand for sustainable tyre recycling solutions.