Span Divergent Limited-Announcement under Regulation 30 (LODR)
Awaiting price reaction for this filing.
Span Divergent Ltd has approved the issuance of a corporate guarantee of up to Rs. 5 crores in favour of HDFC Bank Limited on behalf of its material subsidiary, Dryfruit Factory LLP, to help the subsidiary avail proposed credit facilities. The promoter group and group companies have no interest in this transaction, and it has been carried out on an arm's length basis. The company states there is no immediate financial impact beyond the book entry, but the guarantee constitutes a contingent liability — meaning if the subsidiary fails to repay the bank, Span Divergent would be on the hook for up to Rs. 5 crores. The disclosure was made under SEBI's Regulation 30 listing requirements.
This adds a contingent liability of up to Rs. 5 crores to Span Divergent's balance sheet. While the guarantee supports growth funding at the subsidiary level, shareholders should be aware that any repayment trouble at Dryfruit Factory LLP would directly translate into a financial obligation for the parent company.