On February 14, 2025, Rane Holdings Limited announced that its Finance Committee, during a meeting, approved an inter-corporate loan to Rane Steering Systems Private Limited (RSSL) for a total amount of Rs. 25 Crore. This decision aligns with the company’s goal of providing additional financial support to RSSL for general corporate purposes and operational expenses.

Loan Details and Terms

The loan agreement was finalized for a total amount of Rs. 25 Crore, which can be disbursed in one or more tranches. The loan is unsecured, with a tenure of 3 years and a rollover option, subject to mutual agreement between Rane Holdings and RSSL. Interest payments are structured to be monthly, with a quarterly reset.

Rane Holdings has confirmed that there is no security provided for the loan, and there are no significant special rights associated with the agreement. Additionally, this loan does not fall under any related party transactions despite RSSL being fully owned by Rane Holdings Limited. The agreement was made on an arm's length basis, in line with standard corporate governance practices.

Compliance with SEBI Regulations

As part of the regulatory requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR), Rane Holdings has disclosed all relevant details of the inter-corporate loan transaction. The disclosure complies with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, ensuring transparency in the financial dealings between related entities.

The loan agreement’s purpose is to support RSSL's operational and corporate needs, which include funding working capital and general business operations. The details of the loan and its terms have been disclosed to the stock exchanges as required by the SEBI LODR regulations.

Impact on Rane Holdings and RSSL

This loan represents a continued effort by Rane Holdings to support its wholly-owned subsidiary RSSL in managing its corporate growth and operational expansion. The terms and conditions of the loan have been structured to ensure that both entities benefit from the arrangement while maintaining financial stability and operational efficiency.

The loan will help RSSL in covering its corporate expenses and facilitating smoother business operations over the coming years. Given that the loan is at arm’s length and follows regulatory guidelines, the transaction is expected to have a positive impact on both entities and align with their long-term strategic objectives.

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