Board approves corporate guarantee, SBLC and fixed deposit security for Oman subsidiary's credit facilities

Mukka Proteins' Board approved providing a corporate guarantee, a Standby Letter of Credit (SBLC) and security by way of fixed deposit to HDFC Bank, to secure credit facilities to be availed by its Oman subsidiary.

Fri 9 Oct 2026

Aggregate value covered

up to Rs. 735,830,000

Lender

HDFC Bank Limited

Beneficiary subsidiary

United Gulf Fishery Products LLC, Oman

What the Board approved

• The Board of Directors, at its meeting held today, approved the provision of a corporate guarantee, a Standby Letter of Credit (SBLC) and security by way of fixed deposit by the company.
• These are to secure the due repayment of certain credit facilities to be availed by United Gulf Fishery Products LLC, Oman, a subsidiary of the company, from HDFC Bank Limited.
• The aggregate value covered is up to Rs. 735,830,000 (Rupees Seven Hundred Thirty-Five Million Eight Hundred Thirty Thousand Only).
• The relevant agreements/documents in this regard are yet to be executed.

What these instruments mean, in simple terms

A corporate guarantee is a commitment that if the borrower (here, the subsidiary) does not repay, the company will pay on its behalf. An SBLC is a standby letter of credit given to the lender, and the fixed deposit is money placed as security. Together, they help the subsidiary obtain credit facilities, while placing an obligation on the listed company if the subsidiary does not repay.

Impact on the listed entity, as stated

• The corporate guarantee and SBLC will constitute a contingent liability of the company to the extent of the credit facilities availed by United Gulf Fishery Products LLC.
• The fixed deposit provided as security will remain subject to the terms and conditions stipulated by the lender.
• The company will have the right to recover from the subsidiary any amount paid or obligation discharged by it pursuant to invocation of the corporate guarantee/SBLC or enforcement of the security.

Interest and pricing

• United Gulf Fishery Products LLC, Oman is a subsidiary of the company, so the company has an interest in the transaction by virtue of its investment in the subsidiary.
• The promoter/promoter group has no direct interest in the transaction other than through their interest in the company.
• The corporate guarantee/SBLC/security is proposed to be provided on terms considered to be on an arm's length basis.

How to read it

This is a contingent commitment rather than an immediate outflow. The figure disclosed, up to Rs. 735,830,000, is the ceiling of the cover being provided, while the actual exposure depends on how much of the credit facilities the subsidiary avails.

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