Puravankara Limited has informed the Exchange about Giving Corporate guarantee on behalf of Purvaland Private Limited, wholly owned subsidiary of the company
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Puravankara Limited has provided a corporate guarantee of Rs. 196 crore on behalf of its wholly-owned subsidiary, Purvaland Private Limited. The guarantee supports the issuance of Non-Convertible Debentures (NCDs) of the same amount in favour of Vistra ITCL (India) Limited (the Debenture Trustee). The company has clarified that promoter/promoter group entities do not have any interest in this transaction. Puravankara states that this guarantee is a contingent liability for the company with no immediate impact at this point. The disclosure is made under SEBI Listing Regulations, requiring such guarantees to be reported to the stock exchanges.
This increases Puravankara's contingent liabilities as it guarantees its subsidiary's debt. While the company says there is no immediate impact, shareholders should monitor if Purvaland faces repayment issues, as Puravankara would become liable for the Rs. 196 crore NCD obligation. This signals the parent is actively supporting its subsidiary's fundraising.