Power Mech Projects Guarantees ₹469 Cr for Subsidiary KTMPL
Power Mech Projects Limited has issued a Corporate Guarantee of up to ₹469 Crores (Rupees Four hundred and Sixty-nine Crores only) on behalf of its subsidiary, Kalyaneswari Tasra Mining Private Limited (KTMPL). This guarantee is in favor of CTL Trusteeship Limited, acting as the Security Trustee, to secure financing facilities availed by KTMPL for project Capex, including a Coal Handling Plant, Railway siding, and R&R Colony Construction. The underlying credit facilities comprise loans from RBL Bank Limited (₹175 Crores) and IDFC First Bank Limited (₹294 Crores). The guarantee is valid until September 1, 2035. Power Mech Projects stated that the guarantee does not have an immediate impact on its financial position but constitutes a contingent liability.
Key Highlights
- Power Mech Projects issued a ₹469 Cr corporate guarantee for subsidiary KTMPL.
- Guarantee secures loans from RBL Bank (₹175 Cr) and IDFC First Bank (₹294 Cr).
- Funds are for KTMPL's project Capex, including coal handling and railway siding.
- Guarantee is valid until September 1, 2035.
- No immediate financial impact, but it's a contingent liability.
Price Impact
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