The Company has extended a Corporate Guarantee by execution of a Second Amended & Restated Deed of Corporate Guarantee in favour of SBICAP Trustee Company Limited [acting for the benefits ....
HFCL · price
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HFCL Ltd has executed a Second Amended & Restated Deed of Corporate Guarantee in favor of SBICAP Trustee Company Limited on behalf of its 74%-owned subsidiary HTL Limited. The new guarantee of ₹265 Crores replaces an earlier guarantee of ₹295 Crores, representing a reduction of ₹30 Crores. The guarantee secures working capital facilities from three banks: State Bank of India (₹105 Cr), Yes Bank Limited (₹115 Cr), and Kotak Mahindra Bank Limited (₹45 Cr). HTL manufactures Optical Fiber Cables and related components, with the remaining 26% stake held by the Government of India. The corporate guarantee will be disclosed as contingent liabilities in HFCL's financial statements.
HFCL is extending financial support to its subsidiary HTL by guaranteeing its working capital borrowings. The reduction in guarantee amount from ₹295 Crores to ₹265 Crores may indicate partial debt reduction by HTL, which could be a mildly positive signal for HFCL shareholders.