Supreme Infrastructure India Limited Achieves Near 80% Reduction in Corporate Guarantee Exposure
Supreme Infrastructure India Limited (SIIL) has announced a significant reduction in its corporate guarantee exposure related to its subsidiary, Kopargaon Ahmednagar Tollways (Phase I) Private Limited. This development is part of a company-wide effort to reduce its corporate guarantee liabilities.The reduction stems from a court-approved amicable resolution plan concerning the subsidiary. The previous corporate guarantee exposure of approximately ₹ 180 crore has been reduced to the resolution plan value of ₹ 36.51 crore. This translates to a reduction in potential exposure of approximately ₹ 143.49 crore, which is nearly 80%.
The resolution plan stipulates a settlement of various claims and business requirements for an aggregate amount of ₹ 3,651 lakh (₹ 36.51 crore). SIIL stated that this move represents a crucial step towards minimizing and mitigating the invocation risk associated with the corporate guarantee and substantially reducing the company's contingent liability exposure.
As per the agreed terms of the resolution plan, once the last tranche is paid according to the schedule and all applicable conditions are fulfilled, the claims of the concerned Financial Creditors will be resolved, settled, and extinguished. Following this, the associated corporate guarantees, charges, liens, and encumbrances will be released as approved.
The company noted that the receivable from the Client against the claims of Kopargaon Ahmednagar Tollways (Phase I) Private Limited will remain with SIIL post-payment to the lenders.
Management highlighted that the substantial decrease in corporate guarantee exposure, from ₹ 180 crore to ₹ 36.51 crore, alongside the planned release of the underlying guarantees upon completion of the resolution, signifies a major milestone in reducing legacy contingent liabilities and strengthening the company's financial footing.
About Supreme Infrastructure India Limited (SIIL)
SIIL is an integrated engineering and construction company founded in 1983, possessing extensive experience in infrastructure projects across India. Headquartered in Mumbai, the company operates in diverse infrastructure segments, including roads and highways, bridges, power, water and sewage systems, EPC projects, and BOT projects.
SIIL’s operational capabilities include in-house crushing plants, asphalt plants, wet mix plants, and ready-mix concrete facilities, ensuring efficient operational control. The company has built significant experience across various geographies and challenging terrains through its sector expertise and execution capabilities.
SUPREMEINF Stock Price Movement
Shares of Supreme Infrastructure India Limited are edging higher to ₹87.84 as of 11:50 AM today, posting a 2.69% gain during live trading. The stock has seen robust activity, with 91,367 shares traded and the price currently trading within the intraday range of ₹83.05 to ₹88.37.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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