Pursuant to the provisions of the Listing Regulations and in continuation of our letter dated November 12, 2024, we wish to inform you that the Company (through State Bank of India) has provided balance Standby Letter of Credit ( SBLC ) of INR 6.87 crores (equivalent to NPR 11 crores) in respect of Working Capital Facility in favour of Everest Bank Limited (Lead Bank of the Consortium of Nepalese Banks) on behalf of Kajaria Ramesh Tiles Limited, Nepal, a Joint Venture Company.
KAJARIACER · price
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Kajaria Ceramics, through State Bank of India, has provided the balance Standby Letter of Credit of INR 6.87 crores (equivalent to NPR 11 crores) in favour of Everest Bank Limited, the lead bank of a Nepalese bank consortium. This SBLC supports a Working Capital Facility of NPR 86 crores (approximately INR 53.75 crores) being availed by its Joint Venture Company, Kajaria Ramesh Tiles Limited, Nepal. Promoters Chetan Kajaria and Rishi Kajaria are also directors on the JV's board, and the arrangement is at arm's length with prior Audit Committee approval. The disclosure is a continuation of an earlier letter dated November 12, 2024.
There is no immediate financial impact on the listed company, but this creates a contingent liability of up to INR 6.87 crores if the JV defaults. For retail investors, this is a routine guarantee disclosure supporting the Nepal JV's working capital needs and is unlikely to move the stock on its own.