Exide Industries Raises Corporate Guarantee To Subsidiary By Rs 1,000 Crore

Exide Industries Ltd. has decided to increase its corporate guarantee to Exide Energy Solutions Ltd. by Rs 1,000 crore.

The corporate guarantee limit for its wholly-owned subsidiary Exide Energy Solutions will be increased from Rs 2,000 crore to Rs 3,000 crore, it said in its exchange filing on Tuesday.

As part of the exercise, the company has executed a deed of corporate guarantee with ICICI Bank Ltd., totalling the overall limit to Rs 750 crore, and is in the process of executing agreements with various other banks, it said.

Exide Industries said that the corporate guarantee extension does not have any impact on the company.

On Sept. 4, the company extended a corporate guarantee in favour of five banks against the respective sanctioned credit facilities totalling to Rs 2,000 crore to Exide Energy Solutions.

Shares of Exide Industries closed 0.06% lower at Rs 322.15 apiece on the NSE, as compared with a 0.35% decline in the benchmark Nifty 50.