BSEKG Petrochem LtdMediumNeutral
Announced Mon, 5 Jan · 17:24 IST

Please find enclosed disclosure under Regulation 30 of SEBI (LODR) for issue of Corporate Guarantee.

Credit & Debt View source PDF

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

KG Petrochem Limited has issued a Corporate Guarantee worth Rs. 24 Crores in favour of HDFC Bank on behalf of M/s HEX Exports Private Limited (the Borrower) to help that entity avail a credit facility. The company confirmed that none of its promoters, promoter group, or group companies have any interest in the transaction, and that it is being done on an arm's length basis. No immediate financial or operational impact on KG Petrochem is expected unless HDFC Bank actually invokes the guarantee. In case of invocation, the company may face a financial impact. This represents a contingent liability of Rs. 24 Crores for KG Petrochem.

Likely market impact

This creates a contingent liability of Rs. 24 Crores for KG Petrochem. If HEX Exports defaults, KG Petrochem would be liable to HDFC Bank, which could affect its financials. Investors should monitor the creditworthiness of HEX Exports Private Limited.