HFCL Limited has informed the Exchange about General Updates - Issuance of Corporate Guarantee on behalf of HTL Limited, a subsidiary of the Company ( HTL )
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HFCL Limited has given a corporate guarantee of Rs. 30 crore in favour of Axis Finance Limited to secure a rupee term loan facility for its subsidiary, HTL Limited. HFCL holds 74% in HTL, while the Government of India holds the remaining 26%. HTL manufactures Optical Fiber Cables (OFC), related raw materials, and provides electrical wiring solutions for Aerospace, Defence, Automotive, and Industrial sectors. The guarantee is on an arm's length basis, and no promoter or group company has any interest beyond HFCL's existing shareholding in HTL.
This guarantee will appear as a contingent liability in HFCL's financial statements. It represents a financial support obligation to its subsidiary, which is a small, non-material amount relative to HFCL's overall scale, with limited direct impact on shareholders in the near term.