Media Matrix Worldwide Extends Corporate Guarantee for Subsidiary nexG Devices Private Limited
Media Matrix Worldwide Ltd has extended a corporate guarantee in favor of Yes Bank Limited to secure facilities availed by its subsidiary, nexG Devices Private Limited. This action involves substituting an earlier guarantee with the newly issued obligation.The company executed a Supplemental and Amendatory Deed of Guarantee, committing to a guarantee amounting to ₹ 50 Crores on behalf of nexG. This new guarantee supersedes a previous corporate guarantee of ₹ 70 Crores provided by Media Matrix Worldwide Ltd.
nexG Devices Private Limited is an established distribution and logistics house with a nationwide footprint, specializing in the sales and distribution of innovative products across the mobility and IT sectors. The subsidiary caters to major retail chains through various market segments, including Modern Trade, General Trade, and Online Channels, demonstrating strong capabilities in both national and regional markets.
Media Matrix Worldwide Ltd holds 56.78% of the Paid-Up Share Capital of nexG. The corporate guarantee was provided by the company in favor of Yes Bank Limited to secure various fund and non-fund based facilities that nexG is availing or intends to avail.
The nature of the transaction and its impact are detailed below:
| Detail | Description |
|---|---|
| Guaranteed Entity | nexG Devices Private Limited, a subsidiary of Media Matrix Worldwide Ltd. |
| Guarantee Amount | ₹ 50 Crores (in substitution of the earlier guarantee of ₹ 70 Crores). |
| Purpose | Securing various fund and non-fund based facilities availed or to be availed by nexG from Yes Bank Limited. |
| Arm's Length Status | The transaction is at arm's length, as the guarantee was provided in recognition of nexG being a subsidiary of the Company. |
| Financial Impact on MMWL | The Corporate Guarantee given to Yes Bank Limited on behalf of nexG will be disclosed as contingent liabilities in Media Matrix Worldwide’s financial statements. |
MMWL Stock Price Movement
Media Matrix Worldwide Limited shares slipped on Wednesday, shedding 3.39% to close at ₹13.13. The movement occurred amid trading activity that accounted for 31,494 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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