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.

Popular Vehicles & Services Limited has announced that its wholly owned subsidiary Popular Auto Dealers Private Limited received credit rating affirmation from India Ratings and Research Private Limited on January 6, 2026.

Credit Rating Details

The rating agency has affirmed the existing credit ratings for the subsidiary's bank loan facilities. The comprehensive rating affirmation demonstrates the subsidiary's stable financial position and creditworthiness in the market.

Regulatory Compliance

The company made this disclosure pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation mandates listed companies to inform stock exchanges about material events and developments that could impact investor decisions.

The rating affirmation information has been communicated to both major Indian stock exchanges:

• BSE Limited: Scrip Code 544144
• National Stock Exchange: Symbol PVSL
• ISIN Code: INE772T01024

Company Background

Popular Vehicles and Services Limited operates from its registered office at Kuttukaran Centre, Mamangalam, Kochi. The company maintains business operations across multiple states with GSTIN registrations in Kerala and Tamil Nadu, indicating its multi-state operational presence.

The credit rating affirmation for the subsidiary reflects the group's financial stability and ability to meet its debt obligations. Such ratings are crucial for companies when accessing banking facilities and maintaining relationships with financial institutions.