Puravankara Limited announced that it has extended a Corporate Guarantee amounting to ₹50,00,00,000 (Fifty Crores Rupees). This guarantee is provided in favor of SBM Bank (India) Limited on behalf of its wholly owned subsidiary, Starworth Infrastructure & Construction Limited. The purpose of the guarantee is to support the subsidiary’s purchase of construction equipment and materials. The company stated that, at this juncture, the guarantee constitutes a contingent liability with no immediate impact on the listed entity.
Corporate Guarantee Issued for Subsidiary
Puravankara Limited has formally disclosed the provision of a Corporate Guarantee supporting its wholly owned subsidiary, Starworth Infrastructure & Construction Limited. The announcement was made on March 18, 2026, in compliance with applicable disclosure requirements.
Details of the Financial Obligation
The guarantee has been furnished to SBM Bank (India) Limited. The total amount covered under this corporate surety is substantial, reaching Rs. 50,00,00,000/- (Indian Rupees Fifty Crores only). This financial backing is intended to facilitate the subsidiary’s acquisition of necessary construction equipment and materials.
Transaction Integrity
It was explicitly confirmed that the transaction is being conducted on an arm’s length basis. Furthermore, the company confirmed that neither the Promoter nor the Promoter Group holds any interest in this specific transaction, which is solely related to the internal operations of the subsidiary, Starworth Infrastructure & Construction Limited.
Impact Assessment
The Corporate Guarantee provided represents a contingent liability for Puravankara Limited. However, as the guarantee is provided on behalf of a wholly owned subsidiary that is consolidated into the group structure, the management has assessed that, at this point in time, there is no direct impact of this guarantee on the listed parent company.
Source: BSE
