News Corporate Actions Span Divergent Ltd Approves Rs 5 Crore Corporate Guarantee for Material SubsidiarySpan Divergent Ltd Approves Rs 5 Crore Corporate Guarantee for Material Subsidiary
Span Divergent Ltd has approved a corporate guarantee worth Rs 5,00,00,000 in favor of HDFC Bank Limited for its material subsidiary Dryfruit Factory LLP's credit facilities. The transaction has been structured on an arm's length basis with no promoter interest, and while there is no immediate financial impact, it creates a contingent liability requiring disclosure in financial statements.
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Span Divergent Ltd (formerly Span Diagnostics Ltd) announced that its board has approved the extension of a corporate guarantee worth Rs 5,00,00,000 in favor of HDFC Bank Limited. The guarantee has been issued on behalf of Dryfruit Factory LLP, a material subsidiary of the company, in connection with credit facilities proposed to be availed by the LLP from HDFC Bank Limited.
Corporate Guarantee Details
The company made the announcement through a formal communication to the Bombay Stock Exchange Limited, signed by Paras Desai, Whole-time Director & CFO. The disclosure was made pursuant to regulatory requirements under SEBI Listing Regulations.
| Parameter: | Details |
|---|---|
| Guarantee Amount: | Rs 5,00,00,000 (Rupees Five Crores Only) |
| Beneficiary Bank: | HDFC Bank Limited |
| Entity Covered: | Dryfruit Factory LLP |
| Relationship: | Material Subsidiary |
| Purpose: | Credit facilities |
| Scrip Code: | 524727 |
Regulatory Compliance Framework
The company has made the disclosure pursuant to Regulation 30 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement references SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2025/25 dated February 25, 2025, and SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, ensuring comprehensive regulatory compliance.
Transaction Structure and Independence
According to the regulatory filing, the promoter, promoter group, and group companies do not have any interest in this transaction. The corporate guarantee has been issued on an arm's length basis, ensuring transparency in the transaction structure and maintaining independence from related party influences.
Financial Impact Assessment
The company has indicated that there is no immediate financial impact of the guarantee other than disclosure requirements in the financial statements. However, the guarantee constitutes a contingent liability for the company, with financial exposure materializing only if Dryfruit Factory LLP is unable to meet its repayment obligations to HDFC Bank Limited.
| Impact Category: | Description |
|---|---|
| Immediate Impact: | No immediate financial impact |
| Disclosure Requirement: | Yes, in financial statements |
| Contingent Liability: | Rs 5,00,00,000 |
| Risk Exposure: | Limited to subsidiary's repayment ability |
| Transaction Basis: | Arm's length |
The guarantee is provided on behalf of a material subsidiary that forms part of the consolidated group, aligning with the company's overall business strategy and subsidiary support framework. The formal documentation includes comprehensive details as required under SEBI regulations, with the company maintaining its registered office at 9th Floor, Rajhans Bonista, Behind Ram Chowk, Ghod Dod Road, Surat, Gujarat.
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