Popular Vehicles and Services Limited has informed the Exchange about Giving guarantees/indemnity/ becoming a surety for third party
PVSL · price
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Popular Vehicles and Services Limited (PVSL) has informed the stock exchanges that it is continuing a corporate guarantee in favour of Axis Bank Limited for up to Rs. 20 Crores. The guarantee supports the renewal and enhancement of an inventory funding facility under the Jaguar Land Rover Dealer Finance scheme. The beneficiary of this guarantee is Popular Autoworks Private Limited, which is a wholly-owned subsidiary of PVSL. The company has confirmed the transaction is conducted at arm's length and that no promoters, promoter group members, or directors have any personal interest. PVSL has stated that there is no material impact on the company other than the standard disclosure in financial statements.
This is a routine inter-company arrangement supporting the subsidiary's working capital needs, so direct shareholder impact is limited. However, it does increase PVSL's contingent liability exposure by up to Rs. 20 Crores, which investors should keep in mind when assessing overall group leverage.