Prestige Estates Projects Limited — Others, 12-02-2025: Giving guarantees/indemnity/ becoming a surety for third party

Prestige Estates Projects Limited is issuing a corporate guarantee for up to ₹1,050 crores to secure non-convertible debentures issued by its joint venture, Bamboo Hotel and Global Centre (Delhi) Private Limited. This follows an earlier guarantee of ₹1,700 crores, bringing the total contingent liability to ₹2,030 crores. Shareholder approval was obtained in December 2024 for related party transactions. While this guarantee represents a potential risk for the company, it currently has no immediate financial impact. Investors might view this as a strategic move reinforcing commitments in joint ventures, but should remain mindful of the associated risks.