Company at its meeting held on 31st October, 2025 has granted corporate guarantee to ICICI Bank Limited for granting credit facilities to its subsidiary company MAGNUS ASIA PRIVATE LIMITED.
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Continental Petroleums has granted a corporate guarantee of up to Rs. 100 million (Rs. 99 million working capital limits + Rs. 1 million derivative facilities) in favour of ICICI Bank to secure credit facilities for its subsidiary, Magnus Asia Private Limited (formerly Unique Techno Associates Private Limited). The guarantee covers working capital limits sanctioned via ICICI Bank's letter dated October 23, 2025, to fund the subsidiary's operational requirements. The board approved this at its meeting on October 31, 2025, and the company states this guarantee is a contingent liability with no material impact on its own financials.
The guarantee represents a contingent liability for Continental Petroleums and signals continued support/investment in its subsidiary's growth and working capital needs. While management says it won't materially affect financials, shareholders should note the parent is backing the subsidiary's borrowings, which could pose a risk if the subsidiary faces difficulties servicing the loan.