Star Paper Mills Secures ₹50 Crore Working Capital Facility From UCO Bank; Shares Fall 1.08%

Mumbai, September 11: Star Paper Mills Limited has executed an agreement with UCO Bank to avail working capital facilities aggregating up to ₹50 crore, comprising ₹40 crore of fund-based facilities and ₹10 crore of non-fund-based facilities.

According to the exchange filing, UCO Bank is the lender and Star Paper Mills is the borrower under the newly executed arrangement.

The working capital package comprises ₹40 crore in fund-based facilities and another ₹10 crore in non-fund-based facilities, taking the overall sanctioned facility to ₹50 crore.

The loan agreement was executed on September 10, 2026. The company said the working capital loan amount is yet to be disbursed, so there is no outstanding amount under the facility as of the date of the disclosure.

Stock Market Snapshot

The Star Paper Mills share price stood at ₹168.00, down ₹1.84 or 1.08%, as of 11:35:27 AM IST on September 11, 2026, according to the market data shown.

The stock opened around ₹168.50 and moved higher towards ₹169.50 during the early session before losing ground. It subsequently traded largely between ₹166 and ₹168 and was at ₹168 at the latest available timestamp.

The shares were trading below the ₹169.84 reference level shown on the chart.

Working Capital Facility Secured Against Company Assets

The facility is intended for working capital requirements and includes both fund-based and non-fund-based components.

As per the filing, the security for the facility comprises a charge over the company’s current and fixed assets. This is to be created through hypothecation and mortgage by deposit of title deeds, respectively.

The arrangement therefore provides Star Paper Mills with access to additional working capital while creating security over specified company assets in favour of the lender.

₹40 Crore Fund-Based And ₹10 Crore Non-Fund Facilities

Of the total ₹50 crore facility, ₹40 crore is classified as fund-based and ₹10 crore as non-fund-based.

Fund-based working capital facilities provide access to actual borrowing, while non-fund-based facilities can support requirements such as banking guarantees and other financial commitments without immediate cash disbursement.

The company has not disclosed any amount outstanding under the arrangement as the working capital loan remains to be disbursed.

No Promoter Or Director Interest Disclosed

Star Paper Mills has stated that the promoter, promoter group, directors and key managerial personnel do not have any interest in the transaction.

The company has also disclosed that there are no other material matters or potential conflicts of interest arising from the loan agreement.

The facility was executed with UCO Bank on September 10, 2026.

Star Paper Mills Operates In Paper Manufacturing

Star Paper Mills is engaged in the paper manufacturing business, supplying paper products for various commercial and industrial applications.

Working capital availability is particularly relevant for manufacturing companies, where funds are required to manage inventories, raw materials, production expenses and receivables.

The newly executed banking arrangement gives Star Paper Mills an additional sanctioned funding line for its operating requirements, although the company has yet to draw the disclosed working capital loan.

Conclusion

Star Paper Mills has entered into an agreement with UCO Bank for working capital facilities of up to ₹50 crore.

The facility consists of ₹40 crore in fund-based facilities and ₹10 crore in non-fund-based facilities. The agreement was executed on September 10, 2026, while the company said the working capital loan amount is yet to be disbursed.

The facilities are secured through a charge over current and fixed assets by way of hypothecation and mortgage by deposit of title deeds. The company has also confirmed that its promoters, promoter group, directors and key managerial personnel have no interest in the transaction.

Meanwhile, the Star Paper Mills share price stood at ₹168.00, down ₹1.84 or 1.08%, as of 11:35:27 AM IST on September 11, 2026.

Source:

• https://www.nseindia.com/get-quote/equity/STARPAPER/Star-Paper-Mills-Limited
• https://nsearchives.nseindia.com/corporate/STARPAPER_11092026102947_workingcaploansept2026.pdf