Shalby Limited has informed the Exchange about Giving guarantees/indemnity/ becoming a surety for third party
SHALBY · price
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Shalby Limited has issued a Standby Letter of Credit (SBLC) of up to USD 13.27 million through IndusInd Bank Limited, on behalf of its overseas step-down subsidiary, Shalby Advanced Technologies Inc. (SAT Inc.), USA. The SBLC will help SAT Inc. obtain credit facilities. The company states there is no promoter or promoter group interest in the transaction beyond the subsidiary relationship. The company says no material financial or operational impact is foreseen on Shalby Limited.
This represents an off-balance-sheet exposure of approximately ₹111 crore (at current rates) for the parent company. While management claims minimal impact, large SBLCs can create contingent liability risk if the subsidiary defaults on its underlying obligations.