SBEC Sugar Limited has entered into a significant financial assistance agreement with Priyadarshini Polysacks Limited, securing ₹5.00 crores in unsecured funding. The agreement was executed on December 31, 2025, and has been disclosed under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Agreement Details

The financial assistance arrangement involves key parameters that define the scope and nature of the transaction:

Transaction Structure

The agreement represents a straightforward unsecured lending arrangement between the two companies. SBEC Sugar Limited will avail the financial assistance without providing any collateral or security to Priyadarshini Polysacks Limited. The loan period extends until the closing date as per the repayment schedule, which is set for May 31, 2026.

Related Party Assessment

The company has confirmed that this transaction does not constitute a related party transaction. Key relationship disclosures include:

• Priyadarshini Polysacks Limited holds no shareholding in SBEC Sugar Limited
• The lender is not related to the promoter, promoter group, or group companies
• No special rights have been granted, including director appointment rights or share subscription preferences
• No potential conflicts of interest have been identified

Regulatory Compliance

The disclosure has been made in accordance with Regulation 30 of SEBI LODR 2015, specifically under Para B (5) of Part A of Schedule III and SEBI Circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. The company's Chief Financial Officer, Anil Kumar Goel, has signed the disclosure document, ensuring proper authorization and compliance with regulatory requirements.

Financial Impact

The ₹5.00 crore unsecured financial assistance provides SBEC Sugar Limited with additional liquidity for its operations. The relatively short-term nature of the loan, with repayment scheduled within five months, suggests this may be working capital financing to support the company's business activities during the current fiscal year.

SBEC Sugar Limited has been the target of a successful open offer by SBEC Systems (India) Limited, along with six persons acting in concert. The offer, which sought to acquire up to 26% of the voting capital in SBEC Sugar Limited, was completed in compliance with a Supreme Court order dated March 4, 2025.

Open Offer Details

Financial Implications

The open offer comes at a time when SBEC Sugar Limited's financial position shows some concerning trends:

The negative equity position and high current liabilities indicate financial stress within the company. The slight increase in total assets (0.07%) over the past year suggests minimal growth or investment.

Industry Context

This open offer occurs against the backdrop of a challenging environment for the Indian sugar industry, which has been grappling with issues such as surplus production, price fluctuations, and regulatory changes.

Conclusion

The completion of this open offer represents a significant corporate action for SBEC Sugar Limited. However, the financial data reveals ongoing challenges for the company. Shareholders and industry observers will likely be monitoring how this change in ownership structure might affect the company's future performance and strategic direction in the competitive sugar market.