SWAN Corp Issues Rs 72.57 crore Guarantee for Subsidiary
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SWAN Corp has issued a Rs 72.57 crore (≈ USD 9.0 million) corporate guarantee for its wholly‑owned subsidiary Swan LNG Private Limited, recorded as a contingent liability with no immediate cash impact.
- The guarantee is a contingent liability – it stays off the balance sheet unless Swan LNG defaults on its repayments.
- Approved by the board and signed by the Company Secretary, the guarantee complies with SEBI Listing Obligations & Disclosure Requirements, Regulation 30.
- No cash outflow occurs today; the exposure is a modest portion of SWAN Corp’s total assets, leaving current assets, liabilities and equity unchanged.
- Strategically, the move bolsters Swan LNG’s credit profile, signalling management’s confidence in expanding the group’s LNG portfolio without diluting existing shareholders.
- Investors should watch Swan LNG’s performance, as the guarantee could become a real cash demand if the subsidiary faces financial stress in the volatile LNG market.
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