INDIA —Vibhor Steel Tubes Limited has executed a loan agreement to provide an unsecured credit facility amounting to INR 50 million to its wholly owned subsidiary, Viyom Steel Infra Private Limited. The transaction was finalized following a board meeting convened on October 22, 2026. The financial injection carries an annual interest rate of 9.5 percent and is repayable on demand within a maximum timeframe of ten years. This capital allocation follows a prior credit disbursement of INR 200 million extended to the same subsidiary in August 2026, bringing the cumulative outstanding loan exposure to approximately INR 174.34 million.
The deployed funds are designated to support the operational working capital requirements of the subsidiary alongside land acquisition initiatives. Specifically, the capital will facilitate the establishment of a commercial manufacturing facility dedicated to heavy infrastructure components. The planned production scope encompasses transmission towers, monopoles, crash barriers, octagonal poles, high-mast structures, and pre-fabricated building materials.
This intra-group financing arrangement enables the parent organization to channel capital efficiently toward expanding its manufacturing footprint in specialized industrial sectors. By strengthening the liquidity and asset base of its wholly owned subsidiary, the enterprise supports regional industrial development focused on power transmission and highway safety infrastructure. The transaction qualifies as a related-party arrangement executed strictly on an arm's length basis.
Established as a prominent manufacturer in the steel tube and heavy engineering sector, Vibhor Steel Tubes Limited operates multiple production facilities across India supplying diverse industrial applications. Capital deployments of this nature highlight corporate strategies aimed at scaling subsidiary operations in high-demand structural manufacturing verticals without relying on external debt markets.
