Corporate guarantee of Rs. 150 Crore for wholly owned subsidiary's bank credit facilities
Corporate guarantees of Rs. 150 Crore provided for wholly owned subsidiary Jain Green Technologies — ₹50 crore for Yes Bank and ₹100 crore for RBL Bank.
By ScoutQuest · · 2 min read
- Total Corporate Guarantee
- Rs. 150 Crore
- Guarantee - Yes Bank Limited
- ₹50 crore
- Guarantee - RBL Bank Limited
- ₹100 crore
What the company told the exchanges
Jain Resource Recycling Limited has informed the exchanges that it has, on October 16, 2026, provided corporate guarantees aggregating to Rs. 150 Crore on behalf of Jain Green Technologies Private Limited (JGT), a wholly owned subsidiary of the Company.
Who the guarantees are for
- Yes Bank Limited: ₹50 crore
- RBL Bank Limited: ₹100 crore
- Total: ₹150 crore
These guarantees have been provided to secure credit facilities availed by JGT from the respective lenders, specifically working capital and other short-term credit facilities.
How the decision was taken
The provision of the guarantees was approved by the Borrowing and Investment Committee of the Board of Directors at its meeting on October 13, 2026, under the authority delegated to it by the Board and within the limits approved by the Board. The meeting commenced at 12:00 P.M. (IST) and concluded at 12:15 P.M. (IST).
What it means for the books
The corporate guarantee issued in favour of the lenders will be treated as a contingent liability in the books of account of the Company. There is no immediate cash outflow from the Company on account of issuing the corporate guarantee.
What the disclosure also states
- The promoter and promoter group have no interest in the transaction.
- The guarantees are given by the Company to its wholly owned subsidiary, and the transaction is exempt from Regulation 23 under Regulation 23(5)(b).
Why this matters to a retail investor
A corporate guarantee is the parent company standing behind a subsidiary's borrowings. In simple terms, the Company is telling the lenders that if JGT does not repay the credit facilities, the Company can be called upon to pay. The amount sitting behind that support is ₹150 crore in total, split as ₹50 crore for Yes Bank and ₹100 crore for RBL Bank. Because the guarantee is recorded as a contingent liability, it is a potential obligation rather than an upfront payment; the update states there is no immediate cash outflow. The figures to keep track of are the size of the guarantees and how the subsidiary's credit facilities progress.
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More numbers
- Total corporate guarantees providedRs. 150 Crore
- Guarantee in favour of Yes Bank Limited₹50 crore
- Guarantee in favour of RBL Bank Limited₹100 crore
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