Archean Chemical Industries Limited has announced a significant loan agreement with its wholly owned subsidiary to support an ambitious semiconductor manufacturing project. The company disclosed this development through a regulatory filing, highlighting its strategic investment in India's growing semiconductor sector.

Loan Agreement Details

The loan agreement involves Neun Infra Private Limited, a wholly owned subsidiary of Archean Chemical Industries. The funding arrangement demonstrates the company's commitment to advancing semiconductor manufacturing capabilities in India through structured financial support.

Strategic Purpose and Semiconductor Mission

The loan is specifically intended to address immediate funding requirements of SiC Sem Private Limited for commencement of procurement of long-lead machinery, equipment, and associated items. This funding is essential to maintain project timelines while pending execution of the Fiscal Support Agreement with the Government of India under the India Semiconductor Mission framework.

Neun Infra Private Limited serves as the holding company for SiC Sem Private Limited, which has received approval under the India Semiconductor Mission for setting up a compound semiconductor and ATMP manufacturing facility in India. The proposed funding aligns with advancing early-stage capital commitments of the approved project.

Comprehensive Loan Portfolio

The current agreement forms part of a larger financial commitment by Archean Chemical Industries to its semiconductor ventures. The company has established a substantial loan framework to support its subsidiary's operations and growth initiatives.

Research and Development Focus

The funding will support silicon carbide research and development activities, including collaboration with IIT Bhubaneswar. This partnership underscores the project's commitment to advancing semiconductor technology through academic collaboration and research excellence. The funding will enable procurement of specialized machinery and equipment necessary for compound semiconductor manufacturing.

Regulatory Compliance and Corporate Structure

The loan agreement was executed with full regulatory compliance under SEBI listing regulations. As a wholly owned subsidiary arrangement, the transaction represents an arms-length related party transaction, ensuring transparency and proper corporate governance. Archean Chemical Industries maintains 100% equity holding in Neun Infra Private Limited, providing complete operational control over the semiconductor project development.

Archean Chemical Industries Limited has received another pledge disclosure from its promoter entity, Chemikas Speciality LLP. The promoter has pledged an additional 1,00,000 equity shares of the company as collateral for loans, according to a disclosure made on December 12, 2025.

Latest Pledge Transaction Details

Updated Shareholding Position

Following this latest pledge transaction, Chemikas Speciality LLP's total shareholding and encumbrance position has been updated. The promoter entity holds 3,76,93,219 equity shares, representing 30.53% of the total share capital of Archean Chemical Industries.

Regulatory Compliance

The disclosure was made in compliance with Regulation 31 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The information was communicated to both BSE Limited and National Stock Exchange of India Limited, where Archean Chemical Industries is listed under scrip code 543657 and symbol ACI respectively.

Previous Pledge Activity

This represents the second pledge disclosure from Chemikas Speciality LLP. Earlier, the promoter entity had pledged 3,66,666 equity shares of the company under similar regulatory requirements. The current disclosure shows an increase in the total pledged shares to 61,00,000, indicating ongoing financial arrangements by the promoter group.

Share pledging by promoters is a standard corporate practice for raising funds, though investors typically monitor such activities as they can influence ownership dynamics and market sentiment.