Prestige Estates Issues Corporate Guarantee of 450 Crore for Subsidiary Loan
New Delhi: Prestige Estates Projects Limited has informed the stock exchanges that it is issuing a corporate guarantee for a loan being availed by its subsidiary, Prestige Projects Private Limited.
In a regulatory filing dated February 19, 2026, the company disclosed that the corporate guarantee of up to 450 crore has been provided to Bajaj Housing Finance Limited to secure the loan facility for its subsidiary.
Key Details:
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Guarantee Amount: Up to 450 Crores
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Borrower: Prestige Projects Private Limited (subsidiary)
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Lender: Bajaj Housing Finance Limited
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Date of Intimation: February 19, 2026
The company has clarified that the promoter/promoter group do not have any interest in this transaction. The corporate guarantee has been provided on an arm's length basis, in compliance with the applicable provisions of the Companies Act, 2013 and SEBI Listing Regulations.
Regarding the impact of this guarantee, Prestige Estates stated that the corporate guarantee provided is a contingent liability for the company. It has been provided on behalf of the subsidiary which is part of the consolidated group. At this point, there is no immediate impact of this guarantee on the company.
The disclosure has been made in terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with the latest SEBI circular. The intimation was sent to both the National Stock Exchange (NSE Symbol: PRESTIGE) and BSE Limited (Scrip code: 533274).
This move aligns with common corporate practice where parent entities extend financial support to their subsidiaries to facilitate funding requirements for ongoing or new projects.