MONTECARLOMonte Carlo Fashions Ltd.
Monte Carlo Fashions guarantees ₹117 crore loan for subsidiary's solar project
- Agreement
- Apparel and fashion
Reviewed byKeshav SehgalBlacklitt Research
Monte Carlo Fashions (NSE: MONTECARLO) has approved a corporate guarantee of up to ₹117 crore for a term loan to its wholly owned subsidiary MCFL Energy Projects Private Limited, it said in a filing on 03 Nov 2026. The loan is for a proposed 35 MW solar power project in Madhya Pradesh, and the guarantee is in favour of IDBI Trusteeship Services Limited as Security Trustee for Punjab National Bank.
Key highlights
- :Guarantee amount: ₹117 crore term loan facility, plus interest and costs
- Borrower: MCFL Energy Projects Private Limited, unlisted wholly owned subsidiary
- Project: 35 MW solar power project in Madhya Pradesh
- Impact: treated as a contingent liability; no present impact stated
The guarantee in numbers
| Item | Detail |
|---|---|
| Guarantee amount | Up to ₹117 crore term loan, plus interest, costs and other monies |
| Beneficiary | IDBI Trusteeship Services Limited, Security Trustee for Punjab National Bank |
| Borrower | MCFL Energy Projects Private Limited, unlisted wholly owned subsidiary |
| Purpose of loan | Proposed 35 MW solar power project in Madhya Pradesh |
| Board approval | 03 Nov 2026 |
| Accounting treatment | Contingent liability for the company |
The guarantee secures a subsidiary's solar project loan
The board approved furnishing the corporate guarantee in respect of credit facilities to be availed by MCFL Energy Projects Private Limited. The guarantee secures repayment of a term loan of up to ₹117 crore, together with interest, costs, charges, expenses and other monies payable under the financing documents.
The loan is for the Borrower's proposed 35 MW solar power project in Madhya Pradesh. The guarantee is to be issued on such terms and conditions as may be mutually agreed.
The company treats the guarantee as a contingent liability
The company says the guarantee will be treated as a contingent liability and that there is presently no impact of the guarantee on the company. The filing gives the amount of the guarantee but not the company's own financial position.
Monte Carlo Fashions is an apparel company. Its latest quarter, Q1 FY27 on a consolidated basis, reported total income of ₹159.50 crore, up 7.1% year on year, and a net loss of ₹23.42 crore. The guarantee of ₹117 crore is set against a market value of ₹1,053 crore at the 02 Nov 2026 close.
What the guarantee means for Monte Carlo Fashions' shareholders
The company gives a guarantee of up to ₹117 crore for a subsidiary's solar project loan and says it is a contingent liability with no present impact. The filing does not say the loan's lender terms, interest rate or tenure, when the loan will be availed, the project's cost, or why the guarantee goes beyond project financing.
The filing gives no further dated step beyond the board approval on 03 Nov 2026.
Filed with NSE on . Reference: Original filing (PDF)
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