ISGEC Heavy Engineering Ltd Issues Counter Guarantee for Eswatini Subsidiary
ISGEC Heavy Engineering Ltd has reported the issuance of a counter guarantee through its bankers to support its wholly owned subsidiary, Isgec Eswatini (Proprietary) Limited, Eswatini. The move follows prior board approval for establishing a facility for various forms of bank guarantees and letters of credit.The Company had previously received approval for the issuance of guarantees, including counter guarantees, standby letters of credit (SBLCs), and bonds, through its bankers. This initial approval set an aggregate limit for the facility not exceeding USD 1.1957 million (approximately Rs. 11.23 crores).
Further formalizing this arrangement, ISGEC Heavy Engineering Ltd issued a counter guarantee on June 01, 2026. This specific counter guarantee, secured through the company's bankers, was provided to the bankers of its wholly owned subsidiary, Isgec Eswatini (Proprietary) Limited, Eswatini.
The key financial details of the guarantee issuance are summarized below:
| Guarantee Type | Issued Date | Amount (USD) | Approximate Amount (INR) |
|---|---|---|---|
| Counter Guarantee | June 01, 2026 | 0.902 million | Rs. 8.58 crores |
| Initial Approved Limit | Board Approved | Not exceeding 1.1957 million | Not exceeding Rs. 11.23 crores |
The guarantees and associated instruments are designed to enable the subsidiary’s bankers to issue performance bank guarantees and other necessary bonds in favor of Isgec Eswatini (Proprietary) Limited's customers and the customs authorities of Eswatini. This facilitation supports the subsidiary in executing its existing orders.
Isgec Eswatini is noted as a wholly owned subsidiary of ISGEC Heavy Engineering Ltd, and the Company confirmed that the promoter group has no interest in this transaction.
ISGEC Stock Price Movement
Shares of Isgec Heavy Engineering Limited today slipped by 2.89% to settle at ₹905.55. The stock traded on a significant volume of 102,045 shares, marking a notable decrease from its previous session's close.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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