On February 3, 2025, Dudigital Global Ltd. announced the approval of a Rs. 4 crore loan to its subsidiary, Dudigital BD Private Limited. This decision was made during a meeting of the Finance and Investment Committee on the same day, following prior authorizations granted in meetings held on November 7, 2023, and January 31, 2025. The loan is aimed at supporting the growing operations and working capital requirements of the subsidiary, further strengthening the financial position of Dudigital BD Pvt. Ltd.

Key Details of the Loan Agreement

Loan Amount: The loan granted is Rs. 4,00,00,000 (Rupees Four Crores Only), which will be used to address operational and working capital needs of Dudigital BD Pvt. Ltd.

Nature of Loan: This is a short-term unsecured loan with a repayment term of one year, due on February 2, 2026. The interest rate on the loan is set at 9.5% per annum.

Borrower Details: The loan is extended to Dudigital BD Pvt. Ltd., a subsidiary of Dudigital Global Ltd., in which the parent company holds a significant 98.42% stake.

Arm’s Length Basis: The transaction is classified as a related-party transaction, but it has been conducted at arm’s length, ensuring no preferential treatment. There are no special rights attached to this loan, such as the right to appoint directors or any restrictions on capital structure changes.

Terms of the Agreement: No special terms like preferential share issuance or nomination rights were included in the loan agreement. Additionally, there are no potential conflicts of interest arising from this transaction.

Transaction and Regulatory Compliance

In accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the approval of this loan to the subsidiary was promptly disclosed to the stock exchanges. This complies with the SEBI LODR Regulations, ensuring transparency and timely reporting of material transactions.

Purpose and Impact

The primary objective of this loan is to provide financial support for the expansion and operational growth of Dudigital BD Pvt. Ltd. By addressing its working capital requirements, the subsidiary will be better equipped to manage its day-to-day operations and sustain growth in its respective markets. This loan will also ensure that the subsidiary continues to operate without hindrance, helping strengthen the broader group’s financial stability.

Related Party Transaction Details

Since Dudigital BD Pvt. Ltd. is a subsidiary of Dudigital Global Ltd., this loan qualifies as a related party transaction. However, it has been conducted at arm's length, meaning that the terms of the loan are in line with what an independent third party would offer, ensuring that the transaction is fair and transparent.

Future Outlook and Conclusion

This loan approval is a strategic move to ensure the continued growth and success of Dudigital BD Pvt. Ltd. while aligning with the broader goals of Dudigital Global Ltd. The repayment of the loan will be closely monitored to ensure that the subsidiary meets its obligations. Additionally, no amendments or terminations are anticipated at this stage, but any future changes will be promptly disclosed.

For investors and stakeholders, this disclosure serves as a testament to the company’s commitment to transparency and regulatory compliance. The financial support provided through this loan will likely bolster the subsidiary’s operations and potentially contribute to increased revenue generation in the coming months.

Stay tuned for further updates on Dudigital Global Ltd. and its ongoing business developments through official announcements and reports.

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