Puravankara Limited has issued a corporate guarantee of ₹25.00 crores to support its wholly owned subsidiary's equipment financing requirements. The guarantee was provided to Starworth Infrastructure Construction Limited in favor of IDFC First Bank Limited for construction equipment purchases.

Corporate Guarantee Details

The company disclosed the guarantee arrangement through a regulatory filing, in compliance with SEBI listing obligations. The guarantee structure and key parameters are outlined below:

Regulatory Compliance and Disclosure

The guarantee was disclosed pursuant to Regulation 30 read with Schedule III of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

The regulatory filing confirmed that promoters and promoter group companies have no interest in this transaction, with only Starworth Infrastructure Construction Limited being the interested party as the beneficiary of the guarantee.

Financial Impact Assessment

Puravankara Limited characterized the corporate guarantee as a contingent liability for the company. The management stated that since the guarantee supports a wholly owned subsidiary within the consolidated group, there is no immediate impact on the company's operations or financial position.

The guarantee arrangement enables the subsidiary to access financing for construction equipment, supporting its operational capabilities while maintaining the parent company's oversight through the guarantee structure.

Corporate Structure Context

Starworth Infrastructure Construction Limited operates as a wholly owned subsidiary of Puravankara Limited, forming part of the company's consolidated group structure. This relationship enables the parent company to provide financial support through guarantee mechanisms while maintaining operational independence for the subsidiary's specific business activities.

Puravankara Limited announced that its wholly owned subsidiary, Starworth Infrastructure Construction Limited (SICL), has received a Letter of Acceptance for a major construction contract worth ₹509.52 crores. The contract was awarded by M/s. One Bangalore Luxury Projects LLP for the construction of Varnam Phase 1 at One Bangalore Luxury Project (OBLP), marking a significant milestone for the company's subsidiary operations.

Project Details and Scope

The comprehensive contract encompasses turnkey construction services including civil works, finishes, MEP (Mechanical, Electrical, and Plumbing), and external development. The project is strategically located in Akalehahalli-Mallenhalli Village, Kasaba Hobli, Devanahalli Taluk, Bengaluru Rural District, Karnataka.

Contract Structure and Execution

The agreement is structured as an item rate contract, providing flexibility in pricing based on actual quantities executed. The project has been allocated a 36-month execution timeline, allowing SICL to deliver the comprehensive development in phases while maintaining quality standards. The turnkey nature of the contract ensures complete project responsibility from civil construction to finishing works.

Regulatory Compliance and Disclosure

The announcement was made in compliance with Regulation 30 and Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided comprehensive details as per SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, ensuring full transparency with stakeholders regarding this material development.

Strategic Significance

This substantial order win demonstrates SICL's capabilities in handling large-scale luxury residential projects and reinforces Puravankara's strategic approach of leveraging subsidiary expertise for comprehensive project execution. The contract value of ₹509.52 crores represents a significant addition to the company's order book and strengthens its position in the competitive Bengaluru real estate market.

The Varnam Phase 1 represents a significant luxury housing project in the rapidly developing Devanahalli region, known for its proximity to Kempegowda International Airport and emerging as a key growth corridor in Bengaluru. This contract award underscores the subsidiary's growing reputation in the construction sector and its ability to secure high-value projects from premium developers.