Praxis Home Retail borrows ₹14.5 cr more, total unsecured debt ₹20 cr
A ₹14.5 crore facility from CMS IT Services takes total borrowings from the lender to ₹20 crore in six weeks, against a market cap of ₹162 crore.
— 2 earlier stories on Praxis Home Retail Ltd. →What's new
- Praxis Home Retail signed a ₹14.50 crore unsecured loan with CMS IT Services on June 23, 2026.
- ₹4 crore already drawn; 11% interest, six-month tenure, extendable.
- This follows a ₹5.50 crore loan from the same lender announced in May 2026.
Why this matters
The company is piling on expensive debt at a time of steep losses (₹115 crore net loss in Mar quarter). The total ₹20 crore from one lender is 12% of market cap, a material addition for a nano-cap already under NCLT litigation and high promoter pledges.
What we're watching
- Whether the company can service 11% interest given cash burn and weak sales.
- Any further disclosures on NCLT status or promoter pledge levels.
- If auditors flag going-concern risks in the next quarter.
The full read
Praxis Home Retail is reaching deeper into the pockets of CMS IT Services. In six weeks, the retailer has taken two unsecured loans from the same lender: first ₹5.50 crore in May, now ₹14.50 crore in June. ₹4 crore has already been drawn. At 11% interest and a six-month tenure, this is expensive money for a company that posted a ₹115 crore net loss in the March quarter. The new facility alone equals 9% of its ₹162 crore market cap; combined, the CMS borrowings top ₹20 crore — over a tenth of the company's equity value. For a firm already navigating NCLT litigation and high promoter pledges, the escalating debt load raises real questions about financial flexibility. The proceeds are meant for working capital. What it won't do: ease the burden of a strained balance sheet.
Questions answered
- How much has Praxis Home Retail borrowed from CMS IT Services in total?
- With the June 2026 loan of up to ₹14.50 crore and the May 2026 loan of ₹5.50 crore, the total from this lender stands at up to ₹20 crore. ₹4 crore has already been drawn from the new facility.
- Why does the loan matter given the company's market cap?
- The new ₹14.50 crore facility alone is nearly 9% of Praxis's ₹162 crore market cap. Combined with the earlier loan, it represents over 12% of market cap, a material debt addition for a company with negative equity and ongoing legal cases.
- What is the interest rate and what are the funds for?
- The loan carries an 11% per annum interest rate. The proceeds are earmarked for working capital and general corporate purposes.
Praxis Home Retail Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on PRAXIS →- 24 Jun 2026 · 6:01 PM IST Praxis Home Retail borrows ₹14.5 cr more, total unsecured debt ₹20 cr
- 12d ago Praxis Home Retail adds two retail veterans to board
- 33d ago Praxis Home Retail takes a ₹5.5 cr unsecured loan