Caliber Mining And Logistics544833Board decision

Board approves corporate guarantees up to Rs. 200 Crore for two wholly owned subsidiaries

Caliber Mining and Logistics' Board met on October 27, 2026 and approved giving corporate guarantees for its two wholly owned subsidiaries.

By ScoutQuest · Tue 27 Oct 2026, 1:44 PM IST · 3 min read

Omnibus guarantee limit: up to Rs. 100 Crore for each subsidiary and Rs. 200 Crore for both together, valid up to March 31, 2027
Specific guarantee (CNRPL / HDFC Bank): up to Rs. 20 Crore for CNRPL in favour of HDFC Bank, to secure a vehicle / equipment loan of up to Rs. 20 Crore
Guarantee commission: 1% per annum plus GST

What the board approved

The Board of Directors of Caliber Mining and Logistics Ltd met on Tuesday, October 27, 2026, from 12:00 PM to 01:25 PM (IST) and approved, on the recommendation of the Audit Committee, the giving of corporate guarantees for its two wholly owned subsidiaries:

Caliber Natural Resources Private Limited (CNRPL)
Caliber Mines and Minerals Private Limited (CMMPL)

The guarantees can be given from time to time, in one or more tranches, up to March 31, 2027, in favour of banks, financial institutions, non-banking financial companies and/or other lenders.

The limits

Up to an aggregate amount outstanding at any time of Rs. 100 Crore for each subsidiary
Up to Rs. 200 Crore for both subsidiaries taken together

The specific HDFC Bank guarantee

Within the CNRPL limit, the Board approved a specific corporate guarantee of up to Rs. 20 Crore, together with interest, costs and charges, in favour of HDFC Bank Limited.

This secures a vehicle / equipment loan of up to Rs. 20 Crore to be sanctioned to CNRPL.
The loan is to be used solely to acquire tippers / dumpers and other HEMM (heavy earth moving machinery) needed to execute sub-contract work awarded by the Company at Dudhichua OCP of Northern Coalfields Limited, under a Work Order dated August 25, 2026.
This guarantee forms part of, and is not in addition to, the Rs. 100 Crore limit for CNRPL.

What the company earns and what CNRPL has promised

The guarantee is being given at a guarantee commission of 1% per annum of the amount of the guarantee, plus applicable GST.
CNRPL has undertaken to use the loan only for the stated purpose, to furnish a utilisation certificate from a Chartered Accountant, to promptly inform the Company of any default or delay in repayment, and not to change the loan terms without the Company's prior written consent.
CNRPL will create hypothecation over the vehicles in favour of HDFC Bank Limited and will indemnify the Company against any amount paid under the guarantee.

How this touches the listed company

The update states that issuing the guarantee has no immediate impact on the Company's financial position. However, if CNRPL (or CMMPL, for any guarantee given for it) is unable to meet its repayment obligations, the Company may be required to honour the guarantee to the extent of the amount guaranteed. The update therefore describes the corporate guarantee as a contingent liability for the Company.

On related-party aspects, the update says the promoter / promoter group / group companies have no interest in the transaction, except that both entities are wholly owned subsidiaries and certain Directors of the Company are directors of these subsidiaries. Shareholders' approval is not required for the transaction, and the proposal was still reviewed and recommended by the Audit Committee.

What a retail investor can take away

The Company is using its balance sheet to help its subsidiaries raise funding, mainly for equipment tied to a specific coal-mining sub-contract.
The money committed is large in limit terms, but it is a guarantee, not a loan given by the Company; the actual outflow happens only if a subsidiary defaults.
The guarantee is capped per subsidiary and in total, runs only up to March 31, 2027, and is reviewed by the Audit Committee.