Kirloskar Electric signs $10.6M working-capital facility with Kotak
What's the deal? Kirloskar ElectricDealroom has a profile for this one. Try Dealroom → has signed a US$1.36-crore (about $10.6 million) credit facility agreement with Kotak Mahindra BankDealroom has a profile for this one. Try Dealroom → to meet its working-capital needs. The company executed the Master Facility Agreement on November 12, 2026, after board approval on October 26.
The structure: The facility comprises two US$0.68-crore overdrafts — one dropline overdraft and one against fixed deposits. The total outstanding was nil at execution.
What backs it? The dropline overdraft is secured by current assets, an immovable property in Bengaluru, and a personal guarantee from Vijay R. Kirloskar. The second is backed by a lien on fixed deposits equal to the full limit, plus a corporate guarantee from promoter-group company Kirloskar Power Equipments. The company said Kotak is not a related party and the deal is not a related-party transaction.
Why now? This is working-capital borrowing, not an equity raise or long-term investment. It follows a US$0.54-crore preferential equity infusion from a promoter-group company and a two-notch CRISILDealroom has a profile for this one. Try Dealroom → upgrade to BB/Stable — signs of a broader push to shore up liquidity.
The numbers: Kirloskar Electric's Q2 FY27 revenue rose 16% year on year to US$22.3M, with profit near US$814.8K. But first-half revenue slipped 2% and first-half profit was nil, leaving the recovery uneven. Shares closed at US$1.49 on November 13, within a 52-week range of US$1.02 to US$2.1.
The signal: The facility reads as part of a financing and recovery story rather than evidence of expansion. With promoter equity, a rating upgrade, and fresh bank credit stacking up, Kirloskar Electric is rebuilding its liquidity cushion as it works to steady its operations.
Read more: cnbctv18.com
Image credit: Generated with Gemini
