Subam Papers to provide Rs 40 Cr corporate guarantee to YES Bank
Subam Papers Ltd will provide a corporate guarantee of Rs 40 Cr to YES Bank for its wholly-owned subsidiary, Subam Paper and Boards Private Limited. The guarantee secures a cash credit limit of Rs 40 Cr, comprising an existing limit of Rs 20 Cr and a fresh limit of Rs 20 Cr. The transaction is at arm's length with no interest from the promoter group.
*this image is generated using AI for illustrative purposes only.
subam papers will provide a corporate guarantee of Rs 40 Cr to YES Bank to secure credit facilities for its wholly-owned subsidiary, Subam Paper and Boards Private Limited. The guarantee supports a cash credit limit of Rs 40 Cr, which includes an existing limit of Rs 20 Cr and a fresh limit of Rs 20 Cr. The disclosure was made to BSE Limited on July 22, 2026, under Regulation 30 of the SEBI Listing Regulations.
The corporate guarantee constitutes a contingent liability for Subam Papers Limited. While there is no immediate impact on the company, the liability may materialize if the subsidiary fails to meet its repayment obligations to the lender. The transaction was approved at arm's length, and the promoter or promoter group has no interest in the arrangement.
The following table outlines the key details of the guarantee issuance:
| S.No | Particulars | Description |
|---|---|---|
| 01 | Name of party for which guarantee was given | Subam Paper and Boards Private Limited, Wholly Owned Subsidiary Company. |
| 02 | Promoter/promoter group/group companies interest | The promoter/promoter group/group companies are not interested in this transaction. The corporate guarantee issued is at arm's length. |
| 03 | Brief details of guarantee | Corporate Guarantee to the Lender for an amount of Rs.40.00 Crore as security for the Credit facilities, CC Limit of Rs.40.00 Crore (Existing Limit Rs.20.00 Crore and Fresh Limit Rs.20.00 Crore) sanctioned to Subam Paper and Boards Private Limited. |
| 04 | Impact on listed entity | There is no immediate impact on the Company, except to the extent of the amount for which the corporate guarantee has been provided, in the event Subam Paper and Boards Private Limited is unable to meet its repayment obligations to the Lender. The Corporate Guarantee constitutes a contingent liability for the Company. |
The filing references SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2025/25 dated February 25, 2025, and the SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The intimation was signed by T Balakumar, Managing Director of Subam Papers Limited.
Historical Stock Returns for Subam Papers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | +0.57% | +1.56% | +21.63% | +187.34% | +48.39% |
What specific capital expansion projects will the fresh Rs 20 Cr credit limit fund for the subsidiary?
How will the increased contingent liability affect Subam Papers' leverage ratios and borrowing capacity in the near term?
What are the subsidiary's current cash flow projections to ensure it can service the doubled debt obligation?
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