Popular Vehicles & Services Limited has announced the provision of a corporate guarantee worth ₹5.00 crores to its subsidiary Prabal Motors Private Limited, as disclosed in a regulatory filing dated January 19, 2026. The guarantee arrangement involves DBS Bank India Limited and covers multiple banking facilities for the subsidiary company.

Corporate Guarantee Details

The corporate guarantee structure encompasses two distinct banking facilities provided by DBS Bank India Limited to Prabal Motors Private Limited:

The guarantee is being extended to support the subsidiary's operational financing requirements and working capital needs through established banking relationships.

Regulatory Compliance and Disclosure

Popular Vehicles and Services Limited has made this disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided comprehensive details as required under SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.

Transaction Structure and Independence

The company has clarified several important aspects of this corporate guarantee arrangement:

• Subsidiary Relationship: Prabal Motors Private Limited is a wholly-owned subsidiary of Popular Vehicles and Services Limited
• Arm's Length Transaction: The guarantee is being provided on an arm's length basis
• No Promoter Interest: None of the promoters, promoter group members, or directors have any personal interest in this transaction

Financial Impact Assessment

According to the company's disclosure, the corporate guarantee is not expected to have any significant operational impact on Popular Vehicles and Services Limited. The primary effect will be the inclusion of this guarantee obligation in the company's financial statements as part of standard accounting and disclosure practices.

The guarantee arrangement reflects the parent company's support for its subsidiary's business operations and financing requirements, while maintaining proper corporate governance standards and regulatory compliance protocols.

Popular Vehicles & Services Limited has informed the stock exchanges about providing corporate guarantee and collateral security worth ₹40.50 crores to HDFC Bank Limited for credit facilities sanctioned to its step-down subsidiary. The announcement was made through a regulatory filing dated January 7, 2026, under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements.

Corporate Guarantee Details

The company is extending corporate guarantee in favor of HDFC Bank Limited for credit facilities aggregating to ₹40.50 crores sanctioned to Imperion Cars Private Limited, which is a step-down subsidiary of Popular Vehicles and Services Limited.

Collateral Security Arrangement

As part of the guarantee arrangement, Popular Vehicles and Services Limited is providing its immovable property as collateral security to HDFC Bank Limited. The property is located under Re Sy NoY 06-1713, Peringavu Village, Thrissur Taluk, Thrissur District.

Promoter Interest and Transaction Terms

The company has clarified that none of the promoters, members of the promoter group, or directors have any interest in this transaction. The entire arrangement is being conducted on an arm's length basis, ensuring transparency and compliance with regulatory requirements.

Key aspects of the transaction include:

• No promoter or promoter group involvement
• Arm's length transaction basis
• Step-down subsidiary relationship with Imperion Cars Private Limited
• Compliance with SEBI circular requirements

Impact Assessment

According to the company's disclosure, the collateral security and guarantee provision is expected to have minimal impact on the listed entity. Popular Vehicles and Services Limited stated that at this point, there is no impact of the guarantee on the company, other than the disclosure requirements in the financial statements.

The guarantee is being provided on behalf of the step-down subsidiary, which forms part of the consolidated group structure. This arrangement allows the subsidiary to access credit facilities while maintaining the group's financial flexibility and supporting business operations within the corporate structure.