Jain Resource Recycling Provides Corporate Guarantee of Up To INR 50 Crore to Facilitate Joint Venture's Financing
Jain Resource Recycling Ltd has extended a corporate guarantee in favor of ICICI Bank Limited. This commitment is designed to secure working capital and other short-term facilities for its joint venture company, Jain CY Circular Solutions Private Limited.The guarantee provided by the listed entity is for an amount not exceeding INR 50,00,00,000/- (Indian Rupees Fifty Crore only). This measure supports the operational needs of the joint venture as it secures necessary financing.
Key details regarding the corporate guarantee and its associated parties have been confirmed:
| Particulars | Details |
|---|---|
| Beneficiary of the Guarantee | ICICI Bank Limited |
| Guaranteed Entity | Jain CY Circular Solutions Private Limited (Jain CY) |
| Purpose of Facility | Securing working capital and other short-term facilities for Jain CY |
| Quantum of Commitment | Not exceeding INR 50,00,00,000/- |
Regarding the commercial aspects, the corporate guarantee has been structured in the ordinary course of business and on an arm's length basis. The promoter or the promoter group does not hold any shares in Jain CY Circular Solutions Private Limited; consequently, there is no interest held by the promoters in this transaction.
The company noted that the issuance of the corporate guarantee constitutes a contingent liability on its books of accounts. There will be no immediate cash outflow from Jain Resource Recycling Ltd related to the provision of this corporate guarantee.
JAINREC Stock Price Movement
Jain Resource Recycling Limited shares closed today by slipping 0.78%, settling at ₹338.5 after trading in the stock exchange. The equity traded during the day between a high of ₹342.5 and a low of ₹335.4, while seeing a volume of 738,415 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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