Jaykay Enterprises Signs ₹100 Crore Inter Corporate Deposit Deal

Jaykay Enterprises signs an inter corporate deposit agreement worth up to ₹100 crore with JK Defence & Aerospace at 10% annual interest for three years

Jaykay Enterprises Limited has agreed to provide up to ₹100 crore to its wholly owned subsidiary, JK Defence & Aerospace Limited. The agreement was signed on October 8, 2026, to fund the subsidiary’s activities in the defence and aerospace sector. Structured as an inter corporate deposit, the arrangement carries an annual interest rate of 10% and runs for three years.

The money will not be transferred in one payment. According to the company’s disclosure, it will be released in one or more instalments. The loan is unsecured, so JK Defence & Aerospace has not provided collateral to secure the amount.

Three-Year Loan at 10% Interest

Under the agreement, Jaykay Enterprises will provide the funds, while JK Defence & Aerospace will be responsible for repayment. The principal and accrued interest will be repaid under terms mutually agreed upon by the two companies.

Jaykay Enterprises owns the entire equity of JK Defence & Aerospace, making the transaction a related-party arrangement. The company has stated that the deal was entered into on an arm’s-length basis. It also reported that there were no outstanding loans from Jaykay Enterprises to the subsidiary before this agreement.

The inter corporate loan gives the subsidiary access to funding without requiring it to arrange the entire amount from an external lender. The actual sum transferred will depend on the instalments released under the agreement.

Funds Intended for Defence and Aerospace Activities

The company has identified the defence and aerospace sector as the intended area of use for the funds. However, its disclosure does not name specific projects or explain how the money will be allocated across the subsidiary’s operations.

The three-year term sets the duration of the arrangement, while the 10% interest rate establishes the annual borrowing cost. As the funds may be released in stages, the timing of the payments will depend on the companies’ agreed arrangements.

The announcement confirms the availability of financial support but does not provide details of any new orders, contracts or revenue expected from the transaction.

Company Disclosure

Jaykay Enterprises reported the agreement under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The details are available on the company’s official disclosure page. The filing sets out the amount, interest rate, tenure and related-party nature of the agreement.

The next point to watch is how the funds are disbursed and used by the subsidiary. The announcement itself does not indicate whether the arrangement will lead to any immediate change in business performance.

FAQs

1. How much funding has Jaykay Enterprises agreed to provide?

Jaykay Enterprises has agreed to provide up to ₹100 crore to JK Defence & Aerospace Limited.

2. What is the interest rate and loan tenure?

The agreement carries 10% annual interest and has a tenure of three years.

3. What does an inter corporate deposit mean?

It is a funding arrangement in which one company provides money to another company under agreed financial terms.

4. Will the subsidiary receive the full amount at once?

No. The funds will be released in one or more instalments.

5. Is the loan secured?

No. The agreement is unsecured, meaning no collateral has been pledged against the loan.