REL Rs 100 crore facility is secured by pledge and guarantees

Ravindra Energy Limited (REL) has secured its Rs 100 crore Tata Capital Limited term-loan facility with charges over assets and project cash flows, an exclusive charge over the onward loan to Energy In Motion Limited, promoter guarantees and a share pledge, according to its November 6, 2026 disclosure.

What secures REL's Rs 100 crore Tata Capital facility?

REL's facility is secured through six disclosed layers, led by first pari passu charges on specified borrower assets and project cash flows, plus promoter support and pledged REL shares. The loan agreement was executed on November 5, 2026, for a principal amount not exceeding Rs 100 crore, while the stock-exchange intimation was dated November 6, 2026.

The first layer is a first pari passu charge on REL's present and future movable fixed assets and current assets, excluding assets on which existing lenders already hold an exclusive charge. Pari passu means Tata Capital will share priority over the relevant charged assets with other creditors holding the same-ranking security, rather than receive sole priority over those asset classes.

The cash-flow charge covers money upstreamed from project entities to REL, including subsidy receipts from PM KUSUM projects and top-up debt raised at project-entity level. This security directly connects the facility to specified project-level receipts as well as to REL's movable assets and current assets.

How will REL use the Rs 100 crore loan?

REL will use the Rs 100 crore facility to provide unsecured loans to Energy In Motion Limited (EIM), a jointly controlled entity, or to EIM subsidiaries. The announced purpose is an additional credit facility, not a direct acquisition of shares, because REL described the use as an infusion through unsecured loans.

The agreement gives Tata Capital a first exclusive charge over the unsecured loan that REL infuses into EIM from the facility proceeds. This differs from the pari passu asset and cash-flow charges: the security ranking changes to exclusive for the specific onward EIM loan.

The filing does not state how much of the Rs 100 crore REL has already advanced to EIM, nor does it provide a drawdown schedule or the loan terms that REL may apply to EIM or its subsidiaries. It identifies the facility size as up to Rs 100 crore and the intended use, leaving the amount ultimately deployed and outstanding undisclosed in the November 6, 2026 announcement.

What are the interest rate and payment terms on REL's facility?

REL's term loan has a floating interest rate of 12.75% per year, payable monthly, on a principal amount not exceeding Rs 100 crore. The disclosed rate is floating rather than fixed, so the filing does not establish that 12.75% will remain unchanged through the full life of the facility.

The security package covers more than the principal: it also covers interest, liquidated damages, fees, costs, charges, expenses and other amounts stipulated as payable to Tata Capital. This means the described collateral supports obligations beyond the Rs 100 crore principal ceiling if such additional amounts arise under the loan agreement.

REL did not disclose a maturity date, repayment timetable, benchmark used to reset the floating rate, prepayment terms or the current outstanding amount. The available disclosure instead identifies November 5, 2026 as the execution date, monthly interest payment frequency and the 12.75% annual floating rate.

What promoter support and lender rights are attached to the facility?

REL's facility includes an unconditional and irrevocable personal guarantee from promoter Narendra Murkumbi and an unconditional and irrevocable corporate guarantee from Khandepar Investments Private Limited, a promoter entity. It also includes a pledge of promoter shareholding in REL with cover equal to 1x of the outstanding facility amount.

A 1x cover ties the pledged-share cover to the amount outstanding under the facility, rather than to the full Rs 100 crore commitment regardless of utilisation. The filing does not disclose the number of shares pledged, their market value, the identity of the pledgors beyond the description of promoter shareholding, or the method for testing the stated 1x cover.

Tata Capital also reserves the right to appoint its nominee to REL's board if an event of default occurs and continues. The November 6, 2026 filing does not say that an event of default has occurred, that a nominee has been appointed, or that Tata Capital currently has a board representative.

Is Tata Capital a related party of REL?

REL said Tata Capital is not related to any REL promoter, promoter-group member or group company, and that the Rs 100 crore borrowing is not a related-party transaction. REL based that disclosure on the Companies Act, 2013 and the Listing Obligations and Disclosure Requirements Regulations, 2015.

The parties reported no Tata Capital shareholding in REL in the agreement disclosure, and the filing marked share issuance details as not applicable. The arrangement is therefore disclosed as a lender-borrower agreement executed on November 5, 2026, rather than as an equity issuance or related-party transaction.

Conclusion

The November 2026 facility gives REL access to up to Rs 100 crore for unsecured lending to EIM or EIM subsidiaries, but the funding is supported by several forms of collateral and promoter backing. The structure combines shared-ranking charges on specified assets and project cash flows with an exclusive charge on the onward EIM loan, two guarantees and pledged promoter shares.

What to watch next is REL's planned deployment of the facility into EIM or its subsidiaries and any disclosure of the amount drawn or outstanding. The filing also leaves the maturity, repayment schedule, floating-rate reset mechanism and detailed pledged-share metrics unresolved, while Tata Capital's board-nominee right applies only if an event of default occurs and continues.