Centrum Capital Limited has informed the Exchange about Giving guarantees/indemnity/ becoming a surety for third party
CENTRUM · price
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Centrum Capital Limited has issued a corporate guarantee of Rs. 5 Crores in favour of Mizuho Capsave Finance Private Limited to help its subsidiary, Centrum Finverse Limited, avail a Working Capital Demand Loan for a 6-month tenure. Centrum Finverse is an indirect subsidiary, as Centrum Capital holds 99.99% of Centrum Financial Services Limited, which in turn holds 80.49% of Centrum Finverse. Since the guarantee is for a subsidiary, Centrum Capital may not charge any commission for providing it. The company has stated there is currently no impact on its financials, though the guarantee remains a contingent liability.
This is a routine inter-group arrangement to support a subsidiary's short-term funding needs. While it creates a contingent liability of Rs. 5 Crores for Centrum Capital, the amount is small relative to its overall operations and is unlikely to materially affect shareholders. Investors should note the group's continued reliance on internal guarantees to fund subsidiaries.