News Stocks Grasim Industries Issues Letter of Awareness for Canadian Joint Venture AV Group NB Inc.Grasim Industries Issues Letter of Awareness for Canadian Joint Venture AV Group NB Inc.
Grasim Industries Limited issued a letter of awareness on January 28, 2026, to JP Morgan Chase Bank, N.A., Canada, for joint venture company AV Group NB Inc., which has availed CAD 27 million credit facilities. The company holds 45% stake in the dissolving grade wood pulp manufacturing joint venture, with promoter group companies holding the remaining 55%. The letter expresses intention to support capital and liquidity maintenance without any financial commitment or guarantee obligations, and is expected to have no impact on Grasim's operations.
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Grasim Industries Limited has issued a letter of awareness to JP Morgan Chase Bank, N.A., Canada, regarding its joint venture company AV Group NB Inc., Canada. The disclosure was made on January 28, 2026, in compliance with SEBI listing regulations and master circular requirements.
Letter of Awareness Details
The letter of awareness supports AV Group NB Inc.'s credit facilities without creating any financial obligation for Grasim Industries. The company has clarified that it will not undertake any financial commitment or guarantee repayments to the lenders.
| Parameter: | Details |
|---|---|
| Beneficiary Bank: | JP Morgan Chase Bank, N.A., Canada |
| Joint Venture Company: | AV Group NB Inc., Canada |
| Credit Facility Amount: | CAD 27 million |
| Date of Issuance: | January 28, 2026 |
| Financial Commitment: | None |
Joint Venture Structure
AV Group NB Inc. operates as a joint venture company engaged in manufacturing dissolving grade wood pulp. The ownership structure reflects a strategic partnership between Grasim Industries and promoter group entities.
| Stakeholder: | Ownership Percentage |
|---|---|
| Grasim Industries Limited: | 45% |
| P.T. Indo Bharat Rayon, Indonesia: | Part of remaining 55% |
| Thai Rayon Public Company Limited, Thailand: | Part of remaining 55% |
| Total Promoter Group Holdings: | 55% |
Support Framework
Under the letter of awareness, Grasim Industries has expressed its intention to support the joint venture company in maintaining adequate capital and liquidity levels. This support aims to help AV Group NB Inc. meet its financial obligations while operating at arm's length terms.
The company has emphasized that the arrangement involves no financial guarantees or indemnities. Instead, it represents a statement of intent to provide operational and strategic support to ensure the joint venture's financial stability.
Regulatory Compliance
The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Grasim Industries has confirmed compliance with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, and SEBI Circular SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024.
Impact Assessment
Grasim Industries has stated that the letter of awareness will have no impact on the company's operations or financial position. The arrangement maintains the arm's length nature of the transaction while providing necessary support to the joint venture's banking relationships.
Historical Stock Returns for Grasim Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.60% | +4.62% | +0.76% | +4.82% | +15.50% | +168.51% |
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