Allcargo Terminals Limited has informed the Exchange about enhancement of Corporate Guarantee amounting from Rs. 83,10,00,000 (Rupees Eighty Three crores Ten Lakhs only) to Rs. 100,00,00,000/- (Rupees Hundred crore only) on behalf of Speedy Multimodes Limited to HDFC Bank Limited
ATL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Allcargo Terminals Limited has enhanced its corporate guarantee given to HDFC Bank on behalf of Speedy Multimodes Limited (a related party) from Rs. 83.10 crore to Rs. 100 crore, an increase of approximately Rs. 16.9 crore. A corporate guarantee means Allcargo promises to repay the loan if Speedy Multimodes fails to do so. This enhancement suggests that Speedy Multimodes is taking on additional debt or its existing credit facility with HDFC Bank is being expanded, with Allcargo's backing. Shareholders should note that Speedy Multimodes appears to be a related entity, making this a related-party transaction.
This increases Allcargo's contingent liability by Rs. 16.9 crore. If Speedy Multimodes defaults on its obligations, Allcargo Terminals will have to step in and repay. Investors should watch for any signs of stress at Speedy Multimodes and seek clarification on the purpose of this enhanced borrowing.