Subam Papers Guarantees ₹40 Cr Loan for Subsidiary

Subam Papers Limited has announced the issuance of a Corporate Guarantee for ₹40.00 Crore in favor of YES Bank. This guarantee serves as security for credit facilities, specifically a CC Limit of ₹40.00 Crore (comprising an existing limit of ₹20.00 Crore and a fresh limit of ₹20.00 Crore), sanctioned to its wholly-owned subsidiary, M/s. Subam Paper and Boards Private Limited. The company stated that the transaction is at arm's length and the promoter/promoter group/group companies have no interest in it. The guarantee constitutes a contingent liability for Subam Papers Ltd, with no immediate impact unless the subsidiary fails to meet its repayment obligations.