HFCL Limited issued a ₹30 crore corporate guarantee in favour of Axis Finance Limited to secure a rupee term loan for subsidiary HTL Limited.
HTL Limited, 74% owned by HFCL and 26% by Government of India, manufactures Optical Fiber Cables and provides Aerospace & Defence wiring solutions.
The guarantee will be disclosed as a contingent liability in HFCL's financial statements; transaction is on arm's length basis per SEBI Reg. 30.