S.P. Apparels Ltd Issues Corporate Guarantee to Bank for Associate Company Loan
S.P. Apparels Ltd on April 6, 2026, issued a corporate guarantee to The Hongkong and Shanghai Banking Corporation Limited. The guarantee, set up as security, pertains to a term loan facility availed by Jumeirah Lanka Pvt Limited, an associate company of the issuer.The total amount covered by the corporate guarantee is Rs. 27,96,26,400/- (Rupees Twenty-Seven Crores Ninety-Six Lakhs TwentySix Thousand Four Hundred Only).
The details surrounding this corporate guarantee, which was reported in accordance with regulations, highlight several key aspects of the transaction involving the company's associate.
The guarantee is provided to HSBC Bank for the term loan facility utilized by Jumeirah Lanka Pvt Limited. Regarding the company's interest in this transaction, it was noted that Mr. P. Sundararajan, Chairman & Managing Director of the Company, serves as a director in Jumeirah Lanka Pvt Limited. The company stated that the guarantee does not impact its standing beyond requiring disclosure in the Financial Statements as a Contingent Liability.
The specific details of the guarantee are summarized below:
| Detail Category | Information Provided |
|---|---|
| Party Benefiting from Guarantee | Jumeirah Lanka Pvt Limited |
| Guarantor Bank | HSBC Bank |
| Guarantee Amount | Rs. 27.96 crores |
| Promoter Interest | Yes, Mr. P. Sundararajan is a director in Jumeirah Lanka Pvt Limited. |
| Impact on Company | No impact other than disclosure as a Contingent Liability. |
SPAL Stock Price Movement
At the close of trade, S. P. Apparels Limited rallied by 3.05% to finish at ₹739. Throughout the session, the stock found support, trading within a range set between ₹704.95 and ₹740.Source:
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