HFCL Extends Rs 30 Crore Corporate Guarantee for Subsidiary HTL

HFCL Limited ( (IN:HFCL) ) just unveiled an announcement.

HFCL Limited has issued a corporate guarantee in favour of Axis Finance Limited to secure a rupee term loan facility of up to Rs 30 crore availed or to be availed by its subsidiary HTL Limited. The company, which holds a 74% stake in HTL while the remaining 26% is owned by the Government of India, clarified that the guarantee has been extended on an arm’s length basis.

The guarantee will be reflected as a contingent liability in HFCL’s financial statements, indicating additional support to HTL’s funding arrangements without an immediate cash outflow. This move underscores HFCL’s commitment to backing its subsidiary’s manufacturing and connectivity operations, which are strategically important in telecom, aerospace, defence, automotive and industrial markets.

More about HFCL Limited

HFCL Limited is a telecom and network solutions company, with subsidiary HTL Limited engaged in manufacturing optical fiber cables and passive connectivity solutions. HTL also produces key raw materials for optical fiber cables, including aramid rods and fiber reinforced plastic rods, and supplies electrical wiring interconnect solutions for aerospace, defence, automotive and industrial sectors.

Average Trading Volume: 1,984,240

Technical Sentiment Signal: Hold

Current Market Cap: 108.3B INR

For a thorough assessment of HFCL stock, go to TipRanks’ Stock Analysis page.