In a regulatory filing to the exchanges,
S Chand and Company Limited said that the Board of Directors of the company has, on a meeting held on Thursday, approved the corporate guarantee for an amount of Rs28cr.
The guarantee is in favor of State Bank of India against the cash credit facility sanctioned to Vikas Publishing House Private Limited. Vikas Publishing House Private Limited is a wholly owned subsidiary of the company.
This corporate guarantee, according to the company, is to be provided in favor of SBI to secure the cash credit facility sanctioned to Vikas by the SBI.
In this facility State Bank of India will take over the existing cash credit facilities sanctioned by DBS Bank, Standard Chartered Bank and RBL Bank to Vikas.
S Chand and Company Ltd ended lower by 2.81% at Rs71 per piece, from its previous closing on the BSE.