Insolation Energy issues Rs 347.07 Cr guarantee to subsidiaries
Insolation Energy has issued a corporate guarantee of Rs 347.07 Cr to 22 step-down subsidiaries to secure a Rupee Term Loan Facility for 400 MW of PM KUSUM projects in Rajasthan. The guarantees, valid until 12 months post-commercial operations, will be recorded as contingent liabilities with no immediate financial impact.
*this image is generated using AI for illustrative purposes only.
Insolation Energy has approved the issuance of a corporate guarantee aggregating approximately Rs 347.07 Cr to its 22 step-down subsidiaries to facilitate a Rupee Term Loan Facility. This financial support is intended to fund the execution of 400 MW of ground-mounted solar projects awarded under the PM KUSUM Component A scheme in Rajasthan. The company achieved financial closure for these projects through Aseem Infra Finance Limited.
The corporate guarantees have been provided to enable the subsidiaries to meet fund requirements for project completion, growth, and expansion. The guarantees will remain valid until 12 months from the actual date of commercial operations (COD) or project stabilization, whichever is later. Insolation Energy stated that this move strengthens its commitment to supporting its subsidiaries and demonstrates confidence in the underlying assets and business prospects.
Parties Involved
The corporate guarantee has been issued to the following step-down subsidiaries, which are not interested in the transaction except to the extent of their shareholding:
| S. No. | Name of Subsidiary |
|---|---|
| 1 | MVS Green Infra Private Limited |
| 2 | PED Green Infra One Private Limited |
| 3 | PRJG Green Infra Private Limited |
| 4 | NSJG Green Infra Private Limited |
| 5 | GRJP Green Infra Private Limited |
| 6 | GNVP Green Infra Private Limited |
| 7 | PRMJ Green Infra Private Limited |
| 8 | PGNJ Green Infra Private Limited |
| 9 | SRGE Green Infra Private Limited |
| 10 | DJRG Green Infra Private Limited |
| 11 | VEMJ Green Infra Private Limited |
| 12 | GNPR Green Infra Private Limited |
| 13 | GVHJ Green Infra Private Limited |
| 14 | EGHR Green Infra Private Limited |
| 15 | NGRJ Green Infra Private Limited |
| 16 | GJPN Green Infra Private Limited |
| 17 | HGJP Green Infra Private Limited |
| 18 | PDGN Green Infra Private Limited |
| 19 | RJGM Green Infra Private Limited |
| 20 | MGJN Green Infra Private Limited |
| 21 | JRGM Green Infra Private Limited |
| 22 | JHVG Green Infra Private Limited |
Financial Impact
The company disclosed that there is no immediate financial impact from the issuance of the guarantee, except to the extent of the amount for which it has been provided. The corporate guarantee will be accounted for as a contingent liability in the company's financial statements. The transaction was conducted at arm's length.
Historical Stock Returns for Insolation Energy
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.53% | +5.86% | +4.42% | +24.49% | +24.49% | +24.49% |
What is the projected timeline for achieving commercial operations (COD) for the 400 MW solar projects under the PM KUSUM scheme?
How will the contingent liability of Rs 347.07 Cr impact Insolation Energy's leverage ratios and borrowing capacity for future projects?
What are the potential risks or delays associated with the execution of ground-mounted solar projects in Rajasthan, and how does the company plan to mitigate them?
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