Small-cap stock under ₹50: Integrated Industries’ price will remain in focus in Monday’s trading session after the company announced that it has provided a corporate guarantee to Union Bank of India as security for the loan facility availed by Nurture Well Foods Limited.
On Friday, the small-cap closed 0.52 per cent lower at ₹24.64 apiece. The small-cap multibagger stock has been underperforming lately as the scrip has descended 15 per cent in a month and 31 per cent in the last one year.
However, Integrated Industries’ share price has doubled its shareholders’ wealth, giving whopping 2,980 per cent returns in the last five years.
Details on Integrated Industries’ corporate guarantee
According to an exchange filing dated October 24, the company said that it has issued a corporate guarantee to Union Bank of India as security for the loan facility availed by Nurture Well Foods Limited (NWFL).
The amount for the security for the loan facility stood at ₹25 crores, as per the filing.
“We hereby notify that the Company has issued a corporate guarantee to Union Bank of India (“Lender”) for an amount of ₹25 crores as security for the loan facility availed by Nurture Well Foods Limited, a material subsidiary of the Company from the Lender,” the filing said.
The company further added that there is no immediate impact on the Company, except to the extent of the amount for which the corporate guarantee has been provided, in the event NWFL is unable to meet its repayment obligations to the Lender. The Corporate Guarantee constitutes a contingent liability for the Company.
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