Shree Ajit Pulp & Paper Approves ₹390 Crore Credit Facilities
Shree Ajit Pulp & Paper Limited's board approved borrowing facilities totaling ₹390 crores. This includes a ₹235 crore term loan for existing loan takeover and a ₹155 crore working capital facility. The company will secure these loans with its assets. Gautam Shah, Chairman and Managing Director, is authorized to execute all related documents and negotiations.
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Shree Ajit Pulp & Paper Limited announced that its board of directors approved substantial borrowing facilities during a meeting held on December 18, 2025. The company has secured credit facilities totaling ₹390.00 crores from multiple banks, financial institutions, and non-banking financial companies to support its operational requirements and business expansion.
Credit Facility Details
The board approved two primary borrowing facilities:
| Facility Type | Amount | Purpose |
|---|---|---|
| Term Loan Facility | ₹235.00 crores | Takeover of existing term loan |
| Working Capital Facility | ₹155.00 crores | Working capital requirements with sub-limits |
| Total Facilities | ₹390.00 crores | Combined borrowing facilities |
The term loan facility will be utilized for the takeover of existing term loans, while the working capital facility will support the company's day-to-day operational needs.
Security and Authorization Framework
The approved facilities will be secured through comprehensive security arrangements with the lenders. The company will provide charges over its movable and immovable assets, along with additional securities, guarantees, and contractual comforts as specified in the respective sanction letters and related financing documents.
Key authorization aspects include:
- Gautam Shah, Chairman and Managing Director, has been designated as the Authorized Officer
- Authority to execute and deliver all facility documents and related agreements
- Power to negotiate terms and conditions with lenders
- Authorization to appoint security trustees and provide necessary guarantees
- Ability to make required filings with regulatory authorities
Regulatory Compliance and Documentation
The board meeting, which commenced at 4:00 PM and concluded at 4:23 PM, was conducted in accordance with Section 179 of the Companies Act, 2013, and other applicable regulations. The company confirmed that these borrowing facilities fall within its approved borrowing powers as per the memorandum and articles of association.
The company stated that detailed disclosures pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, will be provided in due course as the loan agreements are yet to be executed. The facilities will require execution of various documents including sanction letters, facility agreements, security trustee agreements, deeds of hypothecation, and mortgage documents.
Strategic Financial Management
This borrowing arrangement represents a strategic move by Shree Ajit Pulp and Paper Limited to optimize its debt structure and ensure adequate working capital for business operations. The takeover component of the term loan suggests refinancing of existing debt, while the working capital facility will provide operational flexibility.
The company has authorized its management to complete all necessary documentation and compliance requirements to implement these facilities effectively. The board has also provided comprehensive powers to the authorized officers to handle negotiations, documentation, and regulatory filings related to these borrowing facilities.
Historical Stock Returns for Shree Ajit Pulp & Paper
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +5.84% | +14.30% | +2.37% | +34.56% | +24.19% | +120.82% |
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