Intimation under Regulation 30 of SEBI (LODR) Regulations 2015 - Giving Corporate Guarantee/Security.
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KMC Speciality Hospitals is providing a corporate guarantee of up to Rs. 98.57 Crores to State Bank of India for a loan availed by its holding company, Sri Kauvery Medical Care (India) Limited. The guarantee amount equals 60% of KMC's tangible net worth as on 31st March 2025. The guarantee is within the limits previously approved by shareholders under Section 186 of the Companies Act at the 2020 AGM. The company has stated the transaction is at arms-length basis and that there is currently no impact on KMC. Notably, the holding company has also extended a reciprocal guarantee of Rs. 98.4 Crores for loans taken by KMC.
This creates a significant contingent liability for KMC equal to 60% of its tangible net worth, exposing minority shareholders to the credit risk of the promoter group entity. While the guarantee is within approved limits, any default by the holding company on this SBI facility could directly impact KMC's financials.