Hubtown Limited has informed the Exchange about Giving guarantees/indemnity/ becoming a surety for third party
HUBTOWN · price
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Hubtown Limited has provided a corporate guarantee to MITCON Credentia Trusteeship Services Limited to secure the issue of Non-Convertible Debentures (NCDs) of up to Rs. 96 Crores by its wholly owned subsidiary, Twenty Five Estates Realty Private Limited. The guarantee is backed by a Deed of Guarantee and Debenture Trust Deed, with terms and conditions specified therein. This guarantee will be recorded as a contingent liability in Hubtown's books. The transaction involves a related party (subsidiary) and has been disclosed under SEBI Listing Regulations.
This adds a contingent liability of up to Rs. 96 Crores to Hubtown's books, increasing its off-balance-sheet exposure. While it supports the subsidiary's fundraising, shareholders should note the added financial obligation if the subsidiary defaults on the NCDs.