Vippy Spinpro Secures Rs 208.35 Cr Term Loan from HDFC Bank for Capacity Expansion
Vippy Spinpro Limited has executed a major term loan facility agreement with HDFC Bank for Rs 208.35 crores to fund capacity expansion through new machinery at its Dewas facility. The loan carries a 7.65% interest rate with a 72-month tenure and is secured through multiple layers including plant & machinery charge, personal guarantees, and current asset hypothecation.
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Vippy Spinpro Limited , a key player in the Indian textile industry, has executed a significant term loan facility agreement with HDFC Bank Limited for Rs 208.35 crores to fund its capacity expansion program. The agreement was executed on January 7, 2026, marking a major step in the company's growth strategy.
Major Financing Agreement
The company has secured a substantial term loan facility from HDFC Bank Limited to support its expansion plans. The loan details are structured as follows:
| Parameter: | Details |
|---|---|
| Loan Amount: | Rs 208.35 crores |
| Lender: | HDFC Bank Limited |
| Purpose: | New machinery for capacity expansion |
| Interest Rate: | 7.65% |
| Tenure: | 72 months (including 12 months moratorium) |
| Repayment: | 20 quarterly instalments after moratorium |
The term loan facility is specifically earmarked for setting up new machinery to enhance the company's production capacity at its Industrial Area facility in Dewas, Madhya Pradesh.
Security and Guarantees
The loan is secured through multiple layers of security to ensure adequate protection for the lender:
- Plant & Machinery: Charge on existing and new plant & machinery
- Personal Guarantees: From Mr. Piyush Mutha and Mr. Praneet Mutha
- Immovable Assets: Exclusive charge on 20,093 square meters of land at Industrial Area AB, Road No. 1, Dewas
- Current Assets: Hypothecation of raw materials, stock in process, finished goods, book debts, consumables, stores & spares, and other current assets
- Fixed Deposits: 10% cash margin and Rs 1 crore DSRA (Debt Service Reserve Account) fixed deposit
Previous Financial Performance
The company's recent financial results for the half-year ended September 30, 2025, showed steady performance with a profit before income tax of Rs 949.06 lakh. Key financial highlights include:
| Particulars: | As of Sept 30, 2025 | As of March 31, 2025 |
|---|---|---|
| Cash and Cash Equivalents: | Rs 560.78 lakh | Rs 1.78 lakh |
| Total Assets: | Rs 15,050.31 lakh | Rs 13,080.06 lakh |
| Other Equity: | Rs 8,836.94 lakh | Rs 8,155.34 lakh |
The company had previously been undergoing an expansion program with an estimated cost of Rs 5,902.90 lakh, funded through term loans and internal accruals.
Strategic Expansion Initiative
This latest financing arrangement represents a significant expansion of the company's earlier announced expansion program. The new term loan facility will enable Vippy Spinpro to accelerate its capacity enhancement plans and strengthen its position in the textile industry.
The company has confirmed that this transaction does not involve any related party arrangements and has been executed at arm's length terms. The agreement was disclosed in compliance with SEBI regulations regarding material agreements and credit facilities.
Historical Stock Returns for Vippy Spinpro
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.15% | -8.08% | -0.28% | -8.11% | -14.11% | +333.11% |
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