BirlaNu Limited has informed the Exchange about Giving guarantees/indemnity/ becoming a surety for third party
BIRLANU · price
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BirlaNu Limited has issued a corporate guarantee of Rs. 10 crore in favour of ICICI Bank Limited on behalf of its step-down subsidiary, Aditya Polytechnic Private Limited. The guarantee covers loan covenants related to borrowings and working capital facilities availed or to be availed by the subsidiary. The promoter/promoter group has no interest in the transaction, and it is being done at arm's length. The Rs. 10 crore will be recorded as a contingent liability on BirlaNu's books. If the subsidiary defaults on any payment or fails to meet loan terms, BirlaNu will be required to immediately pay the bank up to the guaranteed amount.
This is a routine inter-group guarantee for a subsidiary's borrowing. It adds Rs. 10 crore as a contingent liability, meaning shareholders should be aware that BirlaNu stands behind its subsidiary's debt obligations. The financial impact is limited given the size relative to the company, but it signals continued support for the subsidiary's working capital needs.