HFCL has announced the issuance of a corporate guarantee worth Rs 30 crore in favour of Axis Finance Limited. This guarantee is intended to secure the rupee term loan facility availed or to be availed by HTL, a subsidiary in which HFCL holds a 74% stake. The remaining 26% of HTL is owned by the Government of India.
HTL is engaged in the manufacturing of Optical Fiber Cables (OFC) and provides passive connectivity solutions. Additionally, HTL produces key raw materials for OFC, such as Aramid Rods, Fiber Reinforced Plastic Rods, and Impregnated Glass Fiber Reinforcement. The company also offers electrical wiring interconnect solutions for the Aerospace & Defence and Automotive & Industrial sectors.
The corporate guarantee provided by HFCL is at arm’s length and will be disclosed as contingent liabilities in the company’s financial statements. This move aligns with HFCL’s strategic interest in supporting its subsidiary’s financial operations.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).