SAMHINSESamhi Hotels LimitedMediumNeutral
Announced Wed, 28 Jan · 22:30 IST

Samhi Hotels Limited has informed the Exchange about the necessary details as required under regulation 30 of the SEBI LODR Regulations are enclosed herewith in respect of extending a corporate guarantee/ issuing of non-disposal undertaking/ creation of pledge over security(ies) held by the Company in its wholly owned subsidiary, Duet India Hotels (Hyderabad) Private Limited, in favour of Axis Bank Limited ("Lender/ Bank") for the credit facility of INR 130 crores availed by it from Lender mentioned above.

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Samhi Hotels has informed the stock exchange that it is extending a corporate guarantee and pledging securities it holds in its wholly-owned subsidiary, Duet India Hotels (Hyderabad) Private Limited, in favour of Axis Bank. This is being done to secure a credit facility of INR 130 crores availed by the subsidiary. The disclosure has been made under SEBI LODR Regulation 30. The subsidiary will use these funds as part of its borrowing arrangement with the bank, with the parent company standing as guarantor and offering its subsidiary stake as collateral.

Likely market impact

This increases Samhi Hotels' contingent liability by INR 130 crores and ties the parent's balance sheet to the subsidiary's debt obligations. While routine for group financing, shareholders should monitor the subsidiary's debt-servicing ability, as any default could expose the parent.