Intimation of Issuance of Corporate Guarantee of Rs. 42 crore in favour of State Bank of India against borrowing facilities sanctioned / renewed to Fratelli Wines Private Limited (wholly ....
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Fratelli Vineyards Ltd's board approved issuing a corporate guarantee of Rs. 42 crore in favour of State Bank of India on April 25, 2025. This guarantee covers borrowing facilities that SBI has sanctioned or renewed for Fratelli Wines Private Limited (FWPL), which is a wholly owned subsidiary of the company. The transaction has no promoter or promoter group interest and is being done at arm's length. The guarantee creates a contingent liability for Fratelli Vineyards, meaning the parent company would have to pay SBI if FWPL defaults on its borrowings.
Shareholders should note this is a contingent liability of Rs. 42 crore on the parent company's books to support its subsidiary's debt. While there is no immediate cash outflow, it exposes Fratelli Vineyards to potential financial risk if the subsidiary cannot service its SBI loan. This signals continued support and funding for the subsidiary's operations.