Issuance of Corporate Gurantee for Term Loan facility availed by Canopy Living LLP- JV of the company
ARIHANT · price
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On 10th March 2026, the board of Arihant Foundations & Housing Ltd approved issuing a corporate guarantee of up to INR 250 crore for a term loan facility being availed by Canopy Living LLP, the company's joint venture. The underlying facility is up to INR 400 crore from Aditya Birla Capital Limited. Promoters and promoter group have no interest in the transaction, and the guarantee has been given on an arm's length basis. The company describes this as a contingent liability with no current impact on its financial position.
This creates a contingent liability of up to INR 250 crore for Arihant Foundations, exposing it to the credit risk of its joint venture. While the company says there is no immediate impact, shareholders should watch for any default by the JV, which could turn this guarantee into an actual cash outflow for the listed entity.