HFCL Limited has informed the Exchange about General Updates - Issuance of Corporate Guarantee on behalf of HTL Limited, a subsidiary of the Company ( HTL ) to the extent of Rs.265 Crores in substitution of earlier Corporate Guarantee of Rs.295 Crores
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HFCL Limited has extended a corporate guarantee of ₹265 Crores for its subsidiary HTL Limited, replacing an earlier guarantee of ₹295 Crores—a reduction of ₹30 Crores. The guarantee secures working capital facilities from three lenders: State Bank of India (₹105 Cr), Yes Bank Limited (₹115 Cr), and Kotak Mahindra Bank Limited (₹45 Cr). HFCL holds 74% stake in HTL, which manufactures Optical Fiber Cables, passive connectivity solutions, and related raw materials. HTL also serves Aerospace & Defence and Automotive sectors. The company states this is at arm's length and will appear as a contingent liability in HFCL's financial statements.
The reduced guarantee amount signals lower contingent liability exposure for HFCL, though ₹265 Crores remains a significant commitment. The refinancing suggests improved financial positioning of HTL, which is positive for the parent company.