Samvardhana Motherson Issues Corporate Guarantee for Subsidiary's Credit Facility
Samvardhana Motherson International Limited has provided a corporate guarantee to HDFC Bank Limited concerning a credit facility taken by its indirect wholly owned subsidiary, Motherson Electro Components Limited (MECL).The company issued the corporate guarantee in favor of HDFC Bank. The guaranteed credit facility amounts up to INR 2,400,000,000/- (Indian Rupees Two Billion Four Hundred Million only). The potential liability of Samvardhana Motherson under this corporate guarantee is capped at the facility amount and accrued interest thereon.
Motherson Electro Components Limited operates in the manufacturing sector, engaging in the production, assembly, marketing, importing, exporting, and sourcing related to Printed Circuit Boards Assembly, Body Control Module, Zonal ECU, Light Emitting Diode Modules, and other mounted printed circuit boards for both automotive and non-automotive industries.
The guarantee relates solely to securing the credit facility availed by MECL from HDFC Bank Limited. The company confirmed that there is no material impact of this corporate guarantee on its financial standing or operations.
Key details regarding the guarantee are presented below:
| Particulars | Details |
|---|---|
| Beneficiary | HDFC Bank Limited |
| Entity Receiving Guarantee | Motherson Electro Components Limited (MECL) |
| Guarantee Type and Purpose | Corporate guarantee to secure a credit facility |
| Facility Amount | Up to INR 2,400,000,000/- |
| Company Liability Cap | Capped at the facility amount and interest thereon |
| Impact on Company | No material impact on financial or operations |
MOTHERSON Stock Price Movement
Samvardhana Motherson International Limited shares edged higher today in the close, rallying by 1.71% and settling at ₹145.57 after gaining ₹2.45.The stock witnessed robust trading activity throughout the session, with more than 17 million shares changing hands.
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