Popular Vehicles and Services Ltd has announced an extension of a corporate guarantee amounting to ₹55 crore for its subsidiaries, Popular Autoworks Private Limited and Popular Mega Motors (India) Private Limited. This decision, communicated to the BSE and NSE on November 11, 2025, aligns with the company's strategy to support its subsidiaries' financial undertakings. The guarantee consists of a ₹10 crore renewal of a Dealer Finance Facility and a ₹7.5 crore new Term Loan for Popular Autoworks, totaling ₹17.5 crore. For Popular Mega Motors, the guarantee supports a Channel Financing and Ad-hoc limit of ₹37.5 crore.

The corporate guarantees are aimed at facilitating essential financial services for both subsidiaries, which are wholly owned by Popular Vehicles. The company clarified that there is no interest from promoters or directors in these transactions, ensuring that they are conducted at arm's length. This move is part of the company's broader strategy to stabilize and enhance the operational capabilities of its subsidiaries, thereby strengthening its overall market position.

The implications of these guarantees on Popular Vehicles are deemed minimal at this stage, primarily serving as a disclosure in the company's financial statements. As per the requirements of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, further details regarding the guarantees have been provided in an annexure accompanying the announcement. This strategic financial maneuver underscores Popular Vehicles' commitment to bolstering its subsidiaries while maintaining transparency with its investors and regulatory bodies.