Under the revised arrangement, the total facility size stands at ₹720 million (₹72 crore). The funds will primarily be utilised to meet the company’s working capital requirements as part of its operational financing needs.
The lender in the agreement is ICICI Bank Limited, while GNG Electronics Limited is the borrower under the working capital facility. As per the disclosure, the transaction does not involve any shareholding by the bank in the company and does not fall under related party transactions.
The agreement also does not grant special rights such as the appointment of directors, first right to share subscription in the event of equity issuance, or any restrictions on changes in the company’s capital structure.As part of the security arrangement for the facility, the bank has been granted a pari passu charge on the company’s current assets and receivables, both present and future. In addition, an exclusive charge has been created on fixed deposits of the company.
The filing further stated that the outstanding loan amount under the facility currently stands at ₹380 million.
Also read: GNG Electronics expands DBS credit line to ₹800 crore to boost working capital
Shares of GNG Electronics Limited closed at ₹373.50 on the NSE, down 1.80%.
