Baroda Rayon Corporation Secures ₹100 Crore Term Loan for Its Surat Real Estate Project

Surat | May 27, 2025 — Baroda Rayon Corporation Ltd (BSE: 500270) has announced that it has taken a loan of ₹100 crore from the State Bank of India (SBI). The main reason for availing the loan facility is to finance a commercial real estate project in Surat.

Loan Agreement Details

The sanctioned loan is for the STB Phase 1-Part B Project and is fully secured in nature. The loan agreement was executed fully on May 26, 2025. Currently, there is no outstanding amount against this facility.

Key Terms:

• Lender: State Bank of India
• Type of Loan: Secured Term Loan
• Loan Amount: ₹100 crore
• Date of Execution: May 26, 2025
• Outstanding Balance: Nil

Security and Collateral Structure

Primary Security:

1. Hypothecation: Movable assets, stocks, and work-in-progress linked to STB Phase 1-Part B (present & future).
2. Lien on Receivables: Hypothecation of project-related cash flows.
3. Registered Mortgage: Land and buildings comprising 197 units across Blocks F1, G1, H1 & I1 at Surat Textile Bourse, spanning a total area of 52,117.12 sq. meters.

Collateral Security:

• Registered Mortgage: There are nine plots with a total size of 15,795.49 sq. meters. They are located behind Laxminarayan Temple in Udhna, Surat. These plots are registered in the name of Sejima Texyarn Pvt Ltd.

Personal and Corporate Guarantees:

• Individuals:
  • Mr. Damodarbhai Bhimjibhai Patel
  • Mr. Viral Damodarbhai Bhavani
  • Mrs. Vidhya Viralbhai Bhavani
• Corporate:
  • Sejima Texyarn Pvt. Ltd.
  • Kanchenjunga Texturisers Pvt. Ltd.

Transaction Classification

• Related Party Transaction: No
• Promoter Group Relationship: No
• Shareholding in Lending Entity: Nil
• Issuance of Shares: Not applicable

Strategic Outlook

The loan facility explains that the company is focused on capital planning and wants to improve its position in the commercial real estate sector. Now, it has secured financial support, which will help it to support its ongoing project developments.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/fe58f654-9c3c-471e-a4f5-2eb6335f1e53.pdf