Clean Max Enviro Energy Solutions Limited has informed the Exchange about giving guarantee to third party
CLEANMAX · price
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Clean Max Enviro Energy Solutions has issued a corporate guarantee in favour of a lender on behalf of its 74% subsidiary, Clean Max Sphere Energy Private Limited. The guarantee covers credit facilities of up to Rs. 752 crores extended to the subsidiary. The company has stated the transaction is at arm's length and that promoters/promoter group have no interest in it. The guarantee is treated as a contingent liability for the listed parent company, and the filing notes there is currently no impact on the company itself.
This raises the group's contingent liability exposure by up to Rs. 752 crores, meaning the parent could be called upon if the subsidiary defaults on its loan. However, since the beneficiary is a 74% subsidiary and part of the consolidated group, the financial impact is largely internal, though investors should monitor the subsidiary's debt servicing ability.