Centrum Capital Limited has issued a corporate guarantee worth ₹20 crores in favor of Beacon Trusteeship Limited, the company announced. The guarantee supports non-convertible debentures aggregating up to ₹20 crores proposed to be issued by Centrum Wealth Limited, a material subsidiary of the company.

Corporate Guarantee Details

The corporate guarantee has been structured with specific parameters to support the subsidiary's debenture issuance program. Key details of the guarantee arrangement are outlined below:

Regulatory Compliance and Impact

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was made in compliance with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

According to the company's assessment, the issuance of this corporate guarantee represents a contingent liability with no immediate impact on Centrum Capital's operations. The guarantee arrangement does not involve any interest from promoters, promoter groups, or group companies in the transaction.

Corporate Structure Context

Centrum Wealth Limited, the beneficiary subsidiary for which the guarantee has been issued, operates as a material step-down subsidiary of Centrum Capital Limited. The guarantee facility is designed to support the subsidiary's fundraising activities through the debenture route, providing additional security to investors and trustees.

The corporate guarantee mechanism allows the subsidiary to access debt markets with enhanced credibility while maintaining the parent company's oversight of major financial commitments. This structure is commonly employed by financial services companies to support their subsidiaries' capital requirements while maintaining appropriate risk management frameworks.

Centrum Capital Limited has submitted monitoring agency reports for the quarter ended September 30, 2025, detailing the utilization of funds raised through two recent preferential issues. The reports, prepared by Brickwork Ratings, confirm that the company has adhered to its stated objectives without any deviations.

Fund Raising Details

The company raised funds through two separate preferential issues:

1. Warrant Issue: Rs 199.99 crore (with Rs 49.99 crore received as 25% upfront payment)
2. Equity Shares Issue: Rs 149.71 crore (fully subscribed from proposed Rs 172.56 crore)

Fund Utilization

The funds were primarily used for the following purposes:

1. Debt Repayment: Funds were allocated for repaying debts at both the company and subsidiary levels.
2. General Corporate Purposes: This included providing a Rs 35 crore loan to group company Centrum Broking Limited for margin money payments to stock exchanges.

Breakdown of Fund Utilization

*Represents the portion of issue proceeds not yet received as of September 30, 2025.

Key Observations

1. No Deviations: The monitoring agency reported no deviations from the stated objectives, confirming that all funds were deployed as per the offer documents.
2. Intra-group Transactions: A significant portion of the debt repayment was used for intra-group borrowings:
   • Rs 69.00 crore out of Rs 69.41 crore for company debt repayment
   • Rs 39.37 crore out of Rs 45.11 crore for subsidiary debt repayment
3. Timely Utilization: The equity issue funds were fully utilized within the quarter ended September 30, 2025.

Compliance and Transparency

Centrum Capital's submission of these monitoring reports demonstrates its commitment to regulatory compliance and transparency. The reports were prepared in accordance with SEBI (ICDR) Regulations, 2018, and were reviewed by the company's Audit Committee and Board of Directors before submission.

The timely and appropriate utilization of funds, as confirmed by the independent monitoring agency, suggests that Centrum Capital is executing its financial strategy as planned. This may potentially strengthen investor confidence in the company's financial management and corporate governance practices.