Subam Papers Limited has disclosed the issuance of a corporate guarantee pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, as amended, and in accordance with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2025/25 dated February 25, 2025.
The company is providing a corporate guarantee in favor of HDFC Bank for an amount of ₹11.70 crore. This guarantee serves as security for credit facilities sanctioned to Nellai Subam Packaging LLP, which consists of:
- Cash Credit (CC) Limit: ₹4.00 crore
- Term Loan: ₹7.70 crore
Subam Papers Limited is a Designated Partner of Nellai Subam Packaging LLP and holds a contribution and profit-sharing ratio of 80% in the LLP.
Key Details from Annexure A:
Nature of Transaction: The corporate guarantee has been issued to HDFC Bank (referred to as "Canara Bank" in the annexure header, though body text specifies HDFC Bank) for credit facilities provided to Nellai Subam Packaging LLP.
Related Party Status: The promoter/promoter group/group companies do not have any interest in this transaction. The transaction is conducted at arm's length basis.
Terms of Guarantee: The corporate guarantee covers the total facility amount of ₹11.70 crore, comprising ₹4.00 crore cash credit limit and ₹7.70 crore term loan sanctioned to Nellai Subam Packaging LLP.
Financial Impact: The disclosure states there is no immediate impact on the company, except to the extent of the guaranteed amount (₹11.70 crore) in the event that Nellai Subam Packaging LLP is unable to meet its repayment obligations to the lender. The corporate guarantee constitutes a contingent liability for Subam Papers Limited.