Span Divergent Limited has made a regulatory disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 regarding the enhancement of a corporate guarantee.
Key Quantitative Figures
The Board approved enhancing the existing Corporate Guarantee by an additional amount of ₹68,00,000 (Rupees Sixty-Eight Lakhs Only), thereby increasing the aggregate amount of the Corporate Guarantee from ₹5,00,00,000 (Rupees Five Crores Only) to ₹5,68,00,000 (Rupees Five Crores Sixty-Eight Lakhs Only).
Parties Involved
The corporate guarantee is provided:
- Guarantor: Span Divergent Limited
- Beneficiary: HDFC Bank Limited
- Guarantee Recipient: Dryfruit Factory LLP (Material Subsidiary of Span Divergent Limited)
Purpose and Rationale
The guarantee is provided in connection with credit facilities availed/to be availed by Dryfruit Factory LLP from HDFC Bank Limited.
Transaction Details
According to Annexure A:
- The promoter/promoter group/group companies do not have any interest in this transaction
- The Corporate Guarantee has been issued on an arm's length basis
- The guarantee is provided for credit facilities proposed to be availed by Dryfruit Factory LLP
Financial Impact Assessment
The disclosure states: "At this point, there is no immediate financial impact of guarantee on the Company, other than disclosure in the Financial Statements, and to the extent of the amount for which the corporate guarantee has been provided, in the event Dryfruit Factory LLP is unable to meet its repayment obligations to the Lender. The Corporate Guarantee constitutes a contingent liability for the Company."