Optiemus Infracom Limited has informed the Exchange about Giving guarantees/indemnity/ becoming a surety for third party
OPTIEMUS · price
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Optiemus Infracom Limited has approved enhancing a corporate guarantee given to Axis Bank Limited for its wholly owned subsidiary, Optiemus Electronics Limited. The guarantee amount is being increased from Rs. 30 Crores to Rs. 55 Crores to secure credit facilities for the subsidiary. The transaction is on an arm's length basis and the promoter group has no interest in it. The guarantee will be recorded as a contingent liability for the parent company.
This increases the financial exposure of Optiemus Infracom as it becomes liable for the subsidiary's bank borrowings up to Rs. 55 Crores. While it signals support for the subsidiary's growth or working capital needs, it adds contingent liability risk for shareholders.