Pajson Agro adds ₹30 cr HSBC facility, doubling credit headroom for cashew expansion
New HSBC facility gives Pajson ₹30 cr in working capital, including a ₹20 cr letter of credit, as it scales cashew processing. Adds to existing ₹27.5 cr Kotak line.
— 3 earlier stories on Pajson Agro India Ltd. →What's new
- Board approved HSBC facility of ₹30 crore, separate from the ₹27.5 crore Kotak line.
- Includes ₹20 crore letter of credit for working capital.
- Pari‑passu charge on fixed assets, receivables, and inventories with Kotak.
Why this matters
This adds material borrowing headroom for raw-material procurement and capacity expansion at the Andhra Pradesh cashew plant. At over 7% of market cap, the facility is quantitatively significant for a nano‑cap, and the new banking relationship diversifies funding sources beyond Kotak.
What we're watching
- Drawdown pace and utilisation of the facility in the coming quarters.
- Impact on working capital cycle and inventory turns.
- Any acceleration in the capex for capacity expansion.
The full read
Pajson Agro is stacking its banking relationships. Three months after locking in a ₹27.5 crore facility from Kotak Mahindra Bank, the company has added a ₹30 crore line from HSBC – including a ₹20 crore letter of credit – to fund working capital at its Andhra Pradesh cashew plant. The new facility alone represents over 7% of the ₹407 crore market cap, a material addition for a nano‑cap. Both lenders share a pari‑passu charge on fixed assets, receivables, and inventories. With trailing quarterly sales of ₹137 crore and net profit of ₹11 crore, the incremental headroom gives Pajson more firepower to stock raw cashew as it pushes ahead with capacity expansion. Banks are clearly willing to lend; the test is whether the company can convert that credit into margin growth.
Questions answered
- Why did Pajson Agro seek a separate HSBC facility when it already has Kotak credit?
- The new facility provides incremental borrowing capacity and diversifies bank relationships, supporting higher raw-material procurement and the ongoing capacity expansion at its cashew processing plant.
- What is the total credit now available to the company?
- Pajson Agro now has access to at least ₹57.5 crore in bank facilities – ₹27.5 crore from Kotak Mahindra Bank and ₹30 crore from HSBC – though the exact combined limit may depend on security sharing.
- How does the HSBC facility compare to the company's market cap and earnings?
- The ₹30 crore facility is about 7.4% of the ₹407 crore market cap and roughly 2.7 times trailing quarterly net profit of ₹11 crore, underlining its materiality for a nano‑cap firm.
- What assets are being offered as security?
- HSBC will receive a pari‑passu charge on fixed assets, receivables, and inventories alongside Kotak Mahindra Bank, meaning both lenders share equal claim on the same collateral pool.
- Is this facility linked to the earlier expansion programme?
- Yes. The company is in the midst of a capacity expansion at its Andhra Pradesh cashew plant, and the fresh working capital from the letter of credit component supports increased raw material procurement for that expansion.
Pajson Agro India Ltd.
Latest quarter · Mar 2026
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All notes on PAJSON →- 4 Jul 2026 · 8:41 AM IST Pajson Agro adds ₹30 cr HSBC facility, doubling credit headroom for cashew expansion
- 5d ago Pajson Agro targets ₹1,000 cr revenue by FY30, but cuts base growth to 15%
- 16d ago Pajson Agro locks in ₹27 cr from Kotak for cashew capacity push
- 31d ago Pajson Agro hires world's largest cashew processor as advisor