Emami Limited has informed that the Company has issued corporate guarantee to the HDFC Bank Limited, Ambala, for and on behalf of its subsidiary/ step-down subsidiary companies against the Banking facilities availed by them.
EMAMILTD · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Emami Limited has issued corporate guarantees to HDFC Bank, Ambala, for its subsidiary and step-down subsidiary companies. The guarantees cover banking facilities for three entities: Axiom Foods & Beverages Pvt. Ltd. (₹15,151.68 lakhs or ₹151.5 crore), Axiom Packwell Pvt. Ltd. (₹1,762 lakhs), and Axiom Ayurveda Pvt. Ltd. (₹710 lakhs), totaling approximately ₹17,623.68 lakhs or ₹176.2 crore. The guarantee is linked to the recent Share Purchase Agreement where Emami acquired the remaining 73.5% stake in Axiom Ayurveda. The company states this constitutes a contingent liability with no immediate impact on its financials.
The total guarantee of ₹176.2 crore represents contingent liability exposure for Emami, meaning shareholders face potential risk if subsidiaries default on HDFC Bank facilities. The large exposure to Axiom Foods & Beverages (86% of total) warrants monitoring.