Kalyan Jewellers Boosts UK Subsidiary with ₹50 Crore Loan Agreement
By ScanX News Team
Kalyan Jewellers India Limited has entered into a loan agreement with its wholly-owned UK subsidiary, Kalyan Gold & Diamond Jewellery Limited. The unsecured loan of ₹50 Crore is intended for working capital requirements and will be disbursed in tranches. This move suggests a strategic effort to bolster the company's international operations, particularly in the UK market. The transaction, classified as a related party deal, is being conducted on an arm's length basis and has been disclosed to stock exchanges in compliance with SEBI regulations.
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Kalyan Jewellers India Limited , a prominent player in the Indian jewelry market, has taken a significant step to support its international operations. The company recently announced a loan agreement with its wholly-owned subsidiary, Kalyan Gold & Diamond Jewellery Limited, located in the United Kingdom.
Loan Details
The loan agreement, executed on March 14, 2025, outlines the following key details:
| Particulars | Details |
|---|---|
| Lender | Kalyan Jewellers India Limited |
| Borrower | Kalyan Gold & Diamond Jewellery Limited (UK) |
| Loan Amount | ₹50 Crore |
| Nature of Loan | Unsecured |
| Purpose | Working capital requirements |
| Disbursement | To be given in different tranches as per requirements |
Strategic Implications
This financial arrangement suggests a strategic move by Kalyan Jewellers to strengthen its foothold in the UK market. By providing working capital to its UK subsidiary, the company appears to be gearing up for potential expansion or operational enhancements in its international business.
Related Party Transaction
The loan agreement falls under the category of a related party transaction, as Kalyan Gold & Diamond Jewellery Limited is a wholly-owned subsidiary of Kalyan Jewellers India Limited. However, the company has confirmed that the transaction is being conducted on an arm's length basis, ensuring fairness and transparency in the deal.
Regulatory Compliance
In compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Kalyan Jewellers has duly informed the stock exchanges about this material development. The disclosure includes detailed information about the loan agreement, adhering to the regulatory requirements for transparency in corporate actions.
Conclusion
This move by Kalyan Jewellers indicates the company's commitment to supporting its international operations and potentially signals confidence in the growth prospects of its UK business. As the loan is intended for working capital requirements, it may lead to increased operational efficiency and potentially expanded market presence for Kalyan Jewellers in the United Kingdom.
Investors and market watchers will likely monitor how this financial support translates into business growth and performance for Kalyan Jewellers' UK operations in the coming months.
Historical Stock Returns for Kalyan Jewellers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.32% | +2.10% | +5.08% | -25.86% | +30.72% | +590.36% |
