Archean Chemical Industries Provides ₹150 Cr Loan to Wholly Owned Subsidiary Neun Infra

Archean Chemical Industries Limited has entered into a loan agreement with its wholly owned subsidiary, Neun Infra Private Limited. This interim funding of ₹150 Crore is intended to support SiCSem Pri...

Archean Chemical Industries Limited has entered into a loan agreement with its wholly owned subsidiary, Neun Infra Private Limited. This interim funding of ₹150 Crore is intended to support SiCSem Private Limited, a subsidiary of Neun Infra, in commencing the procurement of long-lead machinery and equipment. This financing is crucial for SiCSem Private Limited to maintain project timelines for its compound semiconductor and ATMP manufacturing facility in India, pending the execution of a Fiscal Support Agreement (FSA) with the Government of India under the India Semiconductor Mission (ISM) framework. Neun Infra Private Limited is the holding company for SiCSem Private Limited, which has received approval under the India Semiconductor Mission. The loan agreement, executed on December 20, 2025, is for an unsecured loan with a total amount granted of ₹300 Crore, of which ₹157 Crore was outstanding prior to this new agreement. The new ₹150 Crore loan is repayable over five years, with repayments starting from FY 2029-30, at an interest rate of 7.50% per annum. The company holds 100% equity in Neun Infra Private Limited, and the transaction is conducted at arm's length.

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Why is Archean Chemical Industries Limited in the news today?

Archean Chemical Industries Limited (ACI) is in the news due to the announcement details a loan agreement between a parent company and its subsidiary for funding a semiconductor project. while it supports a strategic venture, it's a related-party transaction and an interim measure pending government agreements, making the immediate financial impact neutral.

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Archean Chemical Industries Provides ₹150 Cr Loan to Wholly Owned Subsidiary Neun Infra

December 20, 2025, 06:38 AM

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Archean Chemical Industries Limited has entered into a loan agreement with its wholly owned subsidiary, Neun Infra Private Limited. This interim funding of ₹150 Crore is intended to support SiCSem Private Limited, a subsidiary of Neun Infra, in commencing the procurement of long-lead machinery and equipment.

This financing is crucial for SiCSem Private Limited to maintain project timelines for its compound semiconductor and ATMP manufacturing facility in India, pending the execution of a Fiscal Support Agreement (FSA) with the Government of India under the India Semiconductor Mission (ISM) framework. Neun Infra Private Limited is the holding company for SiCSem Private Limited, which has received approval under the India Semiconductor Mission.

The loan agreement, executed on December 20, 2025, is for an unsecured loan with a total amount granted of ₹300 Crore, of which ₹157 Crore was outstanding prior to this new agreement. The new ₹150 Crore loan is repayable over five years, with repayments starting from FY 2029-30, at an interest rate of 7.50% per annum. The company holds 100% equity in Neun Infra Private Limited, and the transaction is conducted at arm's length.

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