UltraTech Cement532538Board decision
Board approves corporate guarantee up to USD 55 mn for associate UHG Holdings' loan
UltraTech Cement's board approved an irrevocable and unconditional corporate guarantee of up to USD 55 mn for a loan to be obtained by UHG Holdings IFSC Private Limited, an associate company.
By ScoutQuest · · 1 min read
50%Hindalco Industries (Promoter Group) shareholding in UHG Holdings
- Corporate guarantee amount
- up to USD 55 mn
- Guarantee beneficiary
- UHG Holdings IFSC Private Limited, an associate company
- Promoter shareholding in UHG Holdings
- Grasim Industries (Promoter) holds 9% and Hindalco Industries (Promoter Group) holds 50%
What the board approved
- At its meeting held on 19th October, 2026, the Board of Directors approved the issuance of a corporate guarantee of up to USD 55 mn.
- The guarantee is in connection with a loan to be obtained by UHG Holdings IFSC Private Limited (UHG Holdings), an associate company of UltraTech Cement.
- The guarantee is described as irrevocable and unconditional, and is being provided to UHG Holdings to pursue its business.
Who is involved
- Grasim Industries Limited (Promoter) holds 9% shareholding in UHG Holdings.
- Hindalco Industries Limited (Promoter Group) holds 50% in UHG Holdings.
- UHG Holdings is a related party of the Company, and the transaction is undertaken on an arm's length basis.
What it means for the listed company
- The update states there is no impact on the Company, except to the extent of the amount for which the corporate guarantee will be provided.
- The corporate guarantee constitutes a contingent liability for the Company.
- In simple terms, a contingent liability is a possible obligation that is disclosed to investors; it becomes an actual burden only if the guaranteed party does not meet the loan obligation it is backing.
Other details in the update
- The board meeting commenced at 12 noon and concluded at 1:40 p.m.
What to keep in mind
- The guarantee is for a loan being taken by an associate company in which promoter entities hold shareholding, so it is a related-party transaction carried out at arm's length.
- The size of the obligation to watch is the USD 55 mn guarantee amount, which is the extent of UltraTech's exposure under the arrangement.
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More numbers
- Corporate guarantee approvedUSD 55 mn
- Grasim Industries (Promoter) shareholding in UHG Holdings9%
- Hindalco Industries (Promoter Group) shareholding in UHG Holdings50%
Source: BSE · 19 Oct 2026
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