Oriental Aromatics Limited has informed the Exchange about Giving guarantees/indemnity/ becoming a surety for third party
OAL · price
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Oriental Aromatics Limited has increased the Corporate Guarantee given to Yes Bank Limited by ₹10 crore in favour of its wholly owned subsidiary, Oriental Aromatics & Sons Limited. The total corporate guarantee now aggregates to ₹90 crore, comprising ₹70 crore for a term loan facility (unchanged) and ₹20 crore for a working capital facility (enhanced from ₹10 crore). The guarantee was originally granted in January 2024 at ₹80 crore. The company stated the guarantee is in its overall interest as it helps the subsidiary secure credit facilities at competitive terms.
The enhanced guarantee increases the parent company's contingent liability by ₹10 crore and signals continued support to its subsidiary's growth and working capital needs. For shareholders, this means slightly higher off-balance-sheet exposure, though it is within a group company arrangement at arm's length.