Shriram Properties Limited has informed the Exchange about Giving guarantees/indemnity/ becoming a surety for third party
SHRIRAMPPS · price
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Awaiting price reaction for this filing.
Shriram Properties' Finance and Risk Committee approved a new corporate guarantee of up to Rs. 28.56 Crores on behalf of Kinetic Realtors Private Limited, a third party, to support a term loan availed by landowners of the Shriram Shubham Project. At the same time, the company reduced an existing corporate guarantee given to the same party from Rs. 40 Crores (disclosed on September 29, 2023) to Rs. 8 Crores — a net reduction of about Rs. 32 Crores in that facility. The promoter group and group companies have no interest in the transaction. The disclosure is made under SEBI Listing Regulations (Regulation 30, Para B, Part A of Schedule III).
Net effect is a modest reduction in the company's overall guarantee exposure (by roughly Rs. 3.44 Crores). The new guarantee is tied to a specific real estate project (Shriram Shubham), so the risk to shareholders is project-linked — if Kinetic Realtors or the landowners default on the loan, the company would be liable for the outstanding amount along with interest and charges. Largely neutral-to-slightly-positive for shareholders given the overall reduction.