Baroda Rayon Corporation Secures Rs 100 Crore Loan from SBI

• BRCL secured a Rs 100 crore loan from SBI for a commercial real estate project.
• Loan backed by strong collateral including Surat Textile Bourse units, land, and personal/corporate guarantees.
• Company has pivoted to real estate, with a market cap over Rs 300 crore.

The Baroda Rayon Corporation Limited (BRCL) has entered into a secured loan agreement worth Rs 100 crore with the State Bank of India (SBI), marking a significant financial milestone in its real estate journey. This fresh infusion of capital, formalised on May 26, 2025, is designated for a commercial real estate project and reflects the company’s strategic pivot from textiles to property development.

 

The loan facility is structured as a secured term loan with no outstanding amount as of the agreement date, signifying the commencement of a new funding cycle. BRCL has pledged substantial collateral to secure the facility, including a first charge hypothecation of the project’s movable assets, stocks, and work-in-progress. Additionally, SBI holds a first charge lien on the cash flows and receivables from the Surat Textile Bourse (STB) Phase 1-Part B project.

 

As part of the security arrangement, a first charge registered mortgage has been created over 197 units in STB Phase I Part B, covering approximately 52,117.12 square meters.

 

Further strengthening the collateral structure, BRCL has also extended security over nine plots of land totalling 15,795.49 square meters, owned by Sejima Texyarn Pvt Ltd. The loan is additionally backed by personal guarantees from Mr. Damodarbhai Bhimjibhai Patel, Mr. Viral Damodarbhai Bhavani, and Mrs. Vidhya Viralbhai Bhavani, along with corporate guarantees from Sejima Texyarn Pvt Ltd and Kanchenjunga Texturisers Private Limited.

 

Also Read: The Power of Strategic Innovation and Technology Integration for Brand Growth

 

Originally incorporated in 1958, BRCL was engaged in the manufacturing of Viscose Filament Yarn and Nylon Yarn until its textile operations were discontinued in August 2008. Since then, the company has focused on leveraging its strategically located land assets in Surat a city renowned for its textile and diamond industries for real estate development. Listed on Indian stock exchanges, BRCL maintains its registered office in Surat, Gujarat.

 

The company’s stock currently trades at a Price-to-Earnings (PE) ratio of 19x, compared to the industry average of 36x, and reports a Return on Equity (ROE) of 3 per cent. BRCL holds a market capitalisation exceeding Rs 300 crore, with its stock up 12 per cent from the 52-week low of Rs 120.30.