Vandan Foods Provides Corporate Guarantee for Pharmearth Private Limited's Enhanced Credit Facility
Vandan Foods Ltd has extended a corporate guarantee in connection with the credit facilities availed by Pharmearth Private Limited, following an enhancement and revision of these facilities by Bank of India. The guarantee positions Vandan Foods as the guarantor for the borrowed entity's financial obligations up to INR 17.85 Crores.The corporation guaranteed is Pharmearth Private Limited, which holds the credit facility from Bank of India. The guarantee was issued or extended by Vandan Foods Ltd in response to the revision of these facilities by the bank.
Regarding the relationship between the entities, both Vandan Foods and Pharmearth Private Limited have confirmed that there are no conflicts of interest regarding this transaction. Pharmearth Private Limited is neither a related party of Vandan Foods nor part of its Promoter or Promoter Group.
In relation to the guarantee, two directors and shareholders of Pharmearth Private Limited, namely Mr. Rajul Gajjar and Mr. Sanjay Chauhan, hold shares in Vandan Foods Ltd. Each holds 35,200 equity shares, which collectively account for approximately 0.84% of Vandan Foods’ total paid-up equity share capital.
The guarantee provided by Vandan Foods is structured as a contingent liability to the company at this time, and currently, there is no reported impact on Vandan Foods from this specific guarantee.
Key details regarding the corporate guarantee are summarized in the table below:
| Parameter | Description |
|---|---|
| Borrower | Pharmearth Private Limited |
| Guarantee Issuer | Vandan Foods Ltd |
| Financial Exposure | Up to INR 17.85 Crores |
| Bank/Trustee | Bank of India |
| Relationship Status | The promoter or promoter group has no interest in this transaction, and the guarantee is on an arm's length basis. |
Stock Price Movement
Vandan Foods Ltd settled at ₹23.03 on Friday, posting a gain of 0.09%. The shares traded through an intraday range that spanned from a low of ₹20.50 to a high of ₹23.84.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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