News Corporate Actions PAE Limited Enters Loan Agreement for Conversion of Rs. 4.80 Crore Quasi Equity into Equity SharesPAE Limited Enters Loan Agreement for Conversion of Rs. 4.80 Crore Quasi Equity into Equity Shares
PAE Limited has entered into a loan agreement dated February 27, 2026, with promoter-director Jatinbhai Ramanbhai Patel to convert Rs. 4.80 crore quasi equity into 800,000 equity shares at Rs. 60 per share. The conversion stems from funds totaling Rs. 5.80 crore that Patel infused as a successful resolution applicant during 2024, with Rs. 1.00 crore already converted to preferential shares in April 2025. The transaction requires shareholder approval at the Annual General Meeting and is based on a February 6, 2026 MoU between the parties.
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PAE Limited has disclosed entering into a loan agreement with its promoter and director for the conversion of quasi equity into equity shares, marking a significant corporate restructuring move. The agreement, dated February 27, 2026, involves the conversion of Rs. 4.80 crore into equity shares at a predetermined price.
Loan Agreement Details
The loan agreement has been executed between PAE Limited as the borrower and Mr. Jatinbhai Ramanbhai Patel, who serves as a non-executive director, as the lender. The primary purpose of this agreement is to formalize the conversion of upfront cash brought in by Patel as a successful resolution applicant into equity shares of the company.
| Parameter: | Details |
|---|---|
| Loan Amount: | Rs. 4.80 crore (Rupees Four Crores Eighty Lakhs) |
| Conversion Price: | Rs. 60 per equity share |
| Face Value: | Rs. 10 per share |
| Premium: | Rs. 50 per share |
| Shares to be Issued: | 800,000 equity shares |
| Agreement Date: | February 27, 2026 |
Fund Receipt Timeline
Patel had infused a total of Rs. 5.80 crore into the company across multiple tranches during 2024. The funds were received on different dates, with the largest tranche coming in December 2024.
| Receipt Date: | Amount (Rs.) |
|---|---|
| June 12, 2024: | 1,00,000 |
| July 27, 2024: | 5,00,000 |
| October 18, 2024: | 58,00,000 |
| December 2, 2024: | 5,16,00,000 |
| Total Received: | 5,80,00,000 |
Out of the total amount received, shares worth Rs. 1.00 crore were already issued on a preferential basis pursuant to a board resolution passed on April 14, 2025. The remaining Rs. 4.80 crore will be considered as a loan convertible into equity shares under the current agreement.
Corporate Structure Impact
Jatinbhai Ramanbhai Patel currently holds a 5.00% stake in PAE Limited as a director and promoter. The company has clarified that this transaction does not fall within the purview of related party transactions as per SEBI regulations, since it involves the issuance of specified securities on a preferential basis.
The conversion is subject to approval from shareholders at the Annual General Meeting. The agreement is based on a Memorandum of Understanding entered into between PAE Limited and Patel on February 6, 2026. The company has indicated that there will be no impact on the management or control of the listed entity due to this transaction.
Regulatory Compliance
PAE Limited has made this disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided comprehensive details in accordance with the requirements of Schedule III and relevant SEBI circulars. The disclosure was signed by Sarah Eugene Kantharia, Company Secretary and Compliance Officer, on February 28, 2026.
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