Popular Vehicles and Services Ltd Provides Corporate Guarantee for Subsidiary's Facility
Popular Vehicles and Services Limited announced the continuation of providing a Corporate Guarantee to Axis Bank Limited for its wholly owned subsidiary, Popular Autoworks Private Limited. The guarantee pertains to the renewal and enhancement of the Inventory funding facility, described as the Jaguar Land Over DF Scheme.The facility coverage under this extended guarantee is up to Rs.20,00,00,000/- (Rupees Twenty Crores only).
In a disclosure concerning the corporate guarantee, the details were provided specifying the following points:
- Party for Guarantee: Popular Autoworks Private Limited.
- Subsidiary Relationship: Popular Autoworks Private Limited is the Wholly Owned Subsidiary of Popular Vehicles and Services Limited.
- Promoter Interest: None of the Promoters or Members of the Promoters Group or Directors of the Company have an interest in the transaction. The transaction is stated to be at an Arm's Length basis.
- Guarantee Scope: The Company has continued to extend the Corporate Guarantee in favour of Axis Bank Limited regarding the renewal and enhancement of the Inventory funding facility (Jaguar Land Over DF Scheme) up to Rs.20,00,00,000/-.
- Impact: The guarantee is provided on behalf of the subsidiary, which is part of the consolidated group. The provided information noted that there is no impact of the said guarantee on the Company, other than disclosure in the Financial Statements.
For reference, the structure of the guarantee details included in the filing is presented in the table below:
| Particulars | Details |
|---|---|
| Name of party for which such guarantees or indemnity or surety was given. | Popular Autoworks Private Limited |
| Whether the promoter/ promoter group/ group companies have any interest in this transaction? If yes, nature of interest and details thereof and whether the same is done at 'arm's length'. | Popular Autoworks Private Limited is Wholly Owned Subsidiary of the Company. None of the Promoters or Members of the Promoters Group or Directors of the Company are interested. The transaction is done at Arm's Length basis. |
| Brief details of such guarantee or indemnity or becoming a surety viz. brief details of agreement entered (if any) including significant terms and conditions, including amount of guarantee | The Company has continued to extend a Corporate Guarantee in favour of Axis Bank Limited in relation to the renewal and enhancement of the Inventory funding facility (Jaguar Land Over DF Scheme) up to Rs.20,00,00,000/- (Rupees Twenty Crores only)to Popular Autoworks Private Limited (Wholly Owned Subsidiary). |
| Impact of such guarantees or indemnity or surety on listed entity | The said guarantee is provided on behalf of the subsidiary of the Company, which is part of the consolidated group. At this point, there is no impact of the said guarantee on the Company, other than disclosure in the Financial Statements. |
PVSL Stock Price Movement
At the close of trade, shares of Popular Vehicles and Services Limited are edging higher by 6.11% to trade at ₹96.54. The stock saw intraday action, fluctuating between a low of ₹91.54 and a high of ₹98 today.Source:
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