Puravankara Limited has informed the Exchange about Giving guarantees/indemnity/ becoming a surety for third party on behalf of its Wholly Owned Subsidiary i.e., Grand Hills Developments Private Limited to the tune of Rs. 360 Crores in relation to the issue of Listed NCD of same amount by the Wholly Owned Subsidiary
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Puravankara Limited has given a corporate guarantee of Rs. 360 Crores on behalf of its wholly owned subsidiary, Grand Hills Developments Private Limited. The guarantee backs the subsidiary's proposed issuance of listed, rated, rupee-denominated, transferable Non-Convertible Debentures (NCDs) of the same amount on a private placement basis to identified investors. The company states this guarantee is a contingent liability but currently has no material impact on Puravankara as the subsidiary is part of the consolidated group. Promoter and promoter group entities have no interest in the transaction.
Shareholders should note that Puravankara's contingent liability has increased by Rs. 360 Crores, though the exposure is to its own subsidiary and not a third party. Investors should watch for the NCD pricing and credit rating, as these will signal market confidence in the group's debt servicing ability.