Revathi Equipment India Limited has informed the Exchange about General Updates
RVTH · price
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Revathi Equipment India Limited has issued a corporate guarantee of Rs 40 crores in favour of IDFC First Bank Limited on behalf of Semac Construction Limited, which is part of the company's promoter group and qualifies as a related party. The guarantee has been provided to secure a credit facility being extended by the bank to Semac Construction. The company confirmed the transaction is being done on an arm's length basis. This guarantee will appear as a contingent liability in Revathi's books, though there is no immediate financial impact beyond that.
This creates a contingent liability of Rs 40 crores for Revathi Equipment, meaning the company may have to repay the loan if Semac Construction defaults. Investors should monitor the financial health of the related party, as any default could directly impact Revathi.