Greenply board approves INR 130 cr guarantee for subsidiary capex
GREENPLY · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Board approved a corporate guarantee of up to INR 130 crores in favour of Federal Bank for a Capex Letter of Credit to be availed by wholly owned subsidiary Greenply Speciality Panels Pvt. Ltd. The credit will fund machinery suppliers for expansion of the subsidiary MDF plant. Guarantee is for 12 months and the company will charge a commission from the subsidiary. Subsidiary financials are consolidated, so no direct P&L impact, though it will be shown as contingent liability. Board also reconstituted the Risk Management Committee and updated the authorised KMP list.
Signals capex expansion at subsidiary backed by parent guarantee; contingent liability of up to INR 130 cr, but consolidated financials absorb the impact.