Lloyds Enterprises Limited has informed the Exchange about Giving corporate guarantee
LLOYDSENT · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Lloyds Enterprises Limited's Board has approved issuing an unconditional and irrevocable corporate guarantee worth Rs. 170 crore. The guarantee supports Geomysore Services India Pvt Ltd's issuance of 1,700 unlisted, unrated, senior, secured, redeemable non-convertible debentures. Lloyds Enterprises holds a 30.48% economic stake in GMSI through its 50% investment in Prakar Estates and Promoters LLP, making this a related party transaction conducted at arm's length. The guarantee is provided jointly and severally with Thriveni Earthmovers Private Limited and Prakar Estates and Promoters LLP in favour of Axis Trustee Services Limited. The company states this guarantee will be recorded as a contingent liability on its balance sheet.
This increases Lloyds Enterprises' contingent liabilities by Rs. 170 crore, exposing it to potential financial obligation if Geomysore defaults. Shareholders should monitor this related party exposure, especially given the debentures are unrated, indicating higher risk.