Kirloskar Electric Company has signed a ₹100-crore Master Facility Agreement with Kotak Mahindra Bank to meet its working capital requirements.
In a regulatory filing dated November 13, the company said it executed the agreement on November 12, 2026. The credit facilities were approved by its board of directors at a meeting held on October 26.
The sanctioned facilities comprise a Dropline Overdraft of ₹50 crore and an Overdraft against Fixed Deposits of ₹50 crore. The total outstanding amount was nil as of the date of execution of the agreement.
Details of the credit facilities
Kirloskar Electric has outlined the securities provided against the two facilities.
For the ₹50-crore Dropline Overdraft facility, the security includes current assets, comprising stock, book debts and other current assets. It also includes an immovable property located at Survey No. 16, Thyamagoundlu Hobli, Govenahalli, Bengaluru, Karnataka, and a personal guarantee from Vijay R. Kirloskar.
The second facility, a ₹50-crore overdraft against fixed deposits, is backed by a lien on fixed deposits equivalent to 100% of the overdraft limit. It also carries a corporate guarantee from Kirloskar Power Equipments, a promoter group company.
The company clarified that no special rights have been granted to Kotak Mahindra Bank under the agreement. It also stated that the lender is not related to the promoter or promoter group and that the transaction does not fall under related-party transactions.
Shares of Kirloskar Electric Company closed at ₹110 on November 13, down ₹0.10, or 0.09%, from the previous close. The stock opened at ₹109 during the trading session. It has a 52-week high of ₹154.75 and a 52-week low of ₹74.90.
