KDDL Limited has announced the issuance of a Corporate Guarantee amounting to €2.63 million, approximately CHF 2.44 million, in connection with a revolving loan facility. This loan is provided by ICICI Bank UK PLC – Germany Branch to Pylania AG, which is a wholly owned subsidiary of KDDL Limited. The notification was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, emphasizing the company's compliance with regulatory frameworks. This significant financial move was communicated to both the National Stock Exchange of India and BSE Limited on November 6, 2025.
The corporate guarantee serves to bolster Pylania AG's working capital needs, categorizing it under a Working Capital Demand Loan (WCDL). Notably, KDDL Limited's promoters and directors have no vested interest in this transaction, ensuring that it adheres to an arm’s length basis. The transaction is part of KDDL Limited's broader strategy to support its subsidiaries, illustrating the company's commitment to maintaining financial stability within its consolidated group.
From a financial perspective, the guarantee will be recorded as a contingent liability in KDDL Limited's financial statements. At present, it is not expected to have any immediate impact on the company's overall financial health, as it pertains solely to its subsidiary's operations. This move underscores KDDL Limited's proactive approach in managing its subsidiaries while adhering to the regulatory requirements set forth by SEBI.