Real Estate Company Enters into Loan Agreement of Rs 100 Crore with State Bank of India
The company has a market cap of over Rs 300 crore and the stock is up by 12 per cent from its 52-week low of Rs 120.30 per share.
The Baroda Rayon Corporation Limited (BRCL) has secured a significant financial boost for its commercial real estate endeavours, entering into a loan agreement with the State Bank of India for Rs 100 crore (Rupees One Hundred Crore Only). This secured term loan is specifically earmarked for a commercial real estate project, underscoring BRCL's continued focus on this sector. The loan agreement was officially executed on May 26, 2025, with no outstanding amount as of that date, indicating the fresh infusion of capital.
To secure this substantial loan, BRCL has provided a comprehensive collateral package. The primary security includes a first charge hypothecation of movable assets, stocks and work in progress of the project, as well as a first charge lien on the cash flows and receivables from the Surat Textile Bourse (STB) Phase 1-Part B project. Furthermore, a first charge registered mortgage has been placed on 197 units within Phase I Part B of the Surat Textile Bourse, encompassing a total area of approximately 52117.12 square meters. Collateral security also extends to nine plots totaling 15795.49 square meters owned by Sejima Texyarn Pvt Ltd. Additionally, the loan is backed by personal guarantees from Mr. Damodarbhai Bhimjibhai Patel, Mr. Viral Damodarbhai Bhavani and Mrs. Vidhya Viralbhai Bhavani, alongside corporate guarantees from M/s. Sejima Texyarn Pvt. Ltd. and M/s. Kanchenjunga Texturisers Private Limited.
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The Baroda Rayon Corporation Limited (BRCL), incorporated in 1958 and formerly involved in the manufacturing and sale of Viscose Filament yarn and Nylon yarn, has since shifted its primary focus to real estate activities. While their textile operational activities ceased in August 2008, the company leverages its strategically located land in Surat, Gujarat, a city known for its textile and diamond businesses, for its real estate ventures. BRCL is a public limited company listed on India's stock exchanges and maintains its registered office in Surat.
The PE of the stock is 19x whereas the industry PE multiple is 36 and the ROE of 3 per cent. The company has a market cap of over Rs 300 crore and the stock is up by 12 per cent from its 52-week low of Rs 120.30 per share.
Disclaimer: The article is for informational purposes only and not investment advice.