HP Adhesives Secures ₹21.6 Million Working Capital Term Loan from ICICI Bank

Consumer adhesives manufacturer HP Adhesives Limited (NSE: HPAL, BSE: 543433) has announced that its Board of Directors has approved a proposal to secure new institutional credit lines to support its operational requirements.

The directors evaluated and approved the availing of a Working Capital Term Loan under the Emergency Credit Line Guarantee Scheme (ECLGS) from ICICI Bank Limited. The total principal amount of the credit facility stands at ₹21.6 million (₹2.16 crore).

The debt facility features highly competitive commercial borrowing terms designed to optimize the company's short-term liquidity without straining immediate cash flows:

Interest Framework: The term loan has been locked in at a fixed rate of 9% per annum.

Moratorium Period: The credit structure provides a one-year initial moratorium on principal repayments, allowing the manufacturer to deploy the capital into operational cycles before initiating amortization.

Loan Horizon: The total tenure of the banking facility spans 5 years, inclusive of the principal holiday period.

HP Adhesives confirmed that the capital will be integrated directly into its working capital matrix to support general corporate cycles and production scaling.

Source : Equity Bulls

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HPAdhesives WorkingCapital TermLoan ICICIBank