Popular Vehicles and Services Limited has informed the Exchange about Giving guarantees/indemnity/ becoming a surety for third party
PVSL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Popular Vehicles and Services Limited has extended two corporate guarantees on behalf of its wholly owned subsidiaries. The first is a guarantee of Rs. 21.59 crore in favour of HDFC Bank for the renewal of a credit facility to Popular Mega Motors (India) Private Limited. The second is a guarantee of Rs. 22 crore in favour of South Indian Bank for the renewal and enhancement of a credit facility to Popular Auto Dealers Private Limited. Both subsidiaries are 100% owned by the company, and the transactions are stated to be at arm's length with no promoter or director interest. The company has disclosed that these guarantees have no material impact on the listed entity other than the required financial statement disclosure.
Routine credit support to wholly-owned subsidiaries poses no immediate impact, but shareholders should track these as contingent liabilities. If subsidiaries face financial stress, the parent company would be on the hook to repay these guaranteed amounts.