Ravindra Energy Limited signs Rs 100 crore loan for EIM

Ravindra Energy Limited (REL) executed a loan agreement on November 5, 2026, for a Rs 100 crore Tata Capital Limited (TCL) term-loan facility earmarked for unsecured loans to jointly controlled Energy In Motion Limited (EIM) or its subsidiaries. The facility carries a 12.75% annual floating interest rate payable monthly.

What did REL borrow from TCL?

REL executed a loan agreement with TCL for a rupee term-loan facility of up to Rs 100 crore. The agreement was executed on November 5, 2026, while REL informed BSE Limited and National Stock Exchange of India Limited on November 6, 2026 under Regulation 30, Paragraph B, of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015.

The disclosed principal is capped rather than stated as an amount already drawn, as it is “not exceeding Rs 100 crore”. REL described the purpose as an additional credit facility and did not disclose a drawdown date, repayment schedule, tenor, instalment amount or amount outstanding as of November 6, 2026. The filing therefore discloses committed borrowing capacity rather than the amount received by that date.

Why is REL using the Rs 100 crore facility?

REL said the Rs 100 crore facility will be used to infuse unsecured loans into EIM, a jointly controlled entity, or any of EIM’s subsidiaries. The filing does not state how the Rs 100 crore would be divided between EIM and its subsidiaries, nor does it identify a project, subsidiary, funding timetable or separate allocation for any recipient.

The two legs of the disclosed structure have different forms of protection. REL’s intended loans to EIM or its subsidiaries are expressly unsecured, while TCL’s facility to REL is secured. TCL will hold a first exclusive charge over the unsecured loan that REL injects into EIM from the facility proceeds, linking the lender’s security to the stated downstream use of the borrowing.

REL also disclosed a first pari passu charge over its present and future movable fixed assets and current assets, except assets where an existing lender already has an exclusive charge. A pari passu charge means TCL shares the same ranking with other secured lenders covered by that charge. The security package extends beyond the downstream EIM loan even though the stated use is lending to EIM or its subsidiaries.

What security supports the TCL loan to REL?

REL disclosed six principal security components for the Rs 100 crore facility: charges over assets and cash flows, an exclusive charge over the EIM loan funded by the facility, a personal guarantee, a corporate guarantee and a pledge of promoter shareholding. The filing says the security also covers interest, liquidated damages, fees, costs, charges, expenses and other amounts payable to TCL.

Cash flows upstreamed from project special-purpose vehicles, or SPVs, to REL form part of the collateral. REL specifically included subsidy receipts from PM KUSUM projects and top-up debt raised at SPV level within that cash-flow security. This is separate from the first pari passu charge on REL’s fixed and current assets and the first exclusive charge on the EIM loan proceeds.

The 1x cover means the disclosed share pledge is set at the outstanding facility amount rather than at a separately stated higher multiple. REL did not disclose the number of shares pledged, their market value, a covenant test or a trigger for an additional pledge. It did disclose that both promoter guarantees are unconditional and irrevocable alongside the asset and cash-flow charges.

Can TCL appoint a director under the agreement?

TCL may appoint its nominee to REL’s board only if an event of default occurs and continues. The filing does not define an event of default, identify any existing default or state that TCL had appointed a nominee as of the November 6, 2026 disclosure. The board-nomination right is therefore a contingent lender protection rather than a disclosed current board change.

REL said TCL is not related to REL’s promoters, promoter group or group companies. REL also said the Rs 100 crore term-loan transaction is not a related-party transaction under the Companies Act, 2013, or the Listing Obligations and Disclosure Requirements Regulations, 2015. The disclosure lists no shareholding by TCL in REL and marks shareholding in the counterparty as not applicable.

The filing marks share-issuance details as not applicable, describing the agreement as debt financing rather than an equity issue. REL did not disclose an amendment or termination, and Annexure A records such disclosures as not applicable as of November 6, 2026. The stated nomination right is limited to a continuing default, while the stated use remains unsecured loans to EIM or its subsidiaries.

Conclusion

The November 5, 2026 agreement gives REL a term-loan facility of up to Rs 100 crore at a 12.75% annual floating rate payable monthly, with proceeds earmarked for unsecured lending to EIM or its subsidiaries. This differs from REL’s obligation to TCL, which is backed by assets, project-SPV cash flows, the facility-funded EIM loan, two guarantees and promoter-share pledges with 1x cover.

What to watch next is whether REL draws the facility and deploys funds under its stated plan for EIM or its subsidiaries. The November 6, 2026 filing does not disclose the amount drawn, any allocation between EIM and its subsidiaries, the loan tenor or repayment schedule, leaving these matters unresolved.