Loan & Debt23 Jul 2026, 06:50 pm
Samvardhana Motherson issues ₹240 Cr guarantee for subsidiary loan
AI Summary
Samvardhana Motherson International Limited has issued a corporate guarantee to HDFC Bank Limited, securing a credit facility of up to ₹2,400,000,000 (₹240 Crores) for its indirect wholly-owned subsidiary, Motherson Electro Components Limited (MECL). MECL is involved in manufacturing and assembling electronic components for automotive and non-automotive sectors. The company stated that this guarantee has no material impact on its financial or operational activities. The guarantee covers the principal amount and interest on the availed credit facility.
Key Highlights
- Samvardhana Motherson guarantees ₹240 Cr credit facility for subsidiary MECL.
- MECL is an indirect wholly-owned subsidiary involved in electronics manufacturing.
- The guarantee is secured by HDFC Bank Limited.
- No material impact on Samvardhana Motherson's financials or operations.
- Potential liability capped at facility amount plus interest.
Price Impact
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