Board approves corporate guarantee up to Rs. 2941.19 crore and Rs. 200 crore infusion into wholly-owned subsidiary

Board meeting outcome dated 30th September 2026.

Wed 30 Sep 2026

Corporate Guarantee Amount

₹ 2941,19,00,000 (Two Thousand Nine Hundred Forty-One Crore and Nineteen Lakhs)

Promoter Contribution Infusion

up to ₹ 200 Crores

Board Meeting Date

30th September 2026

Purpose

Credit facilities for subsidiary's business operations and solar projects

Cost Audit Report

Approved for FY 2025-26

What the Board approved

• A corporate guarantee aggregating up to ₹ 2941,19,00,000 (Two Thousand Nine Hundred Forty-One Crore and Nineteen Lakhs) in favour of the company's Wholly-Owned Subsidiary. The purpose is to help the subsidiary avail credit facilities from banks, financial institutions or other lenders for development and implementation of its business operations and solar projects.
• Infusion of additional promoter contribution of up to ₹ 200 Crores into the same Wholly-Owned Subsidiary, in one or more tranches, to meet promoter contribution requirements under the project financing arrangements and for business needs. This may be done by subscription to equity share capital, unsecured loans, Non-Convertible Debentures (NCDs), Optionally Convertible Debentures (OCDs), quasi-equity or any other permissible instruments, or a combination.
• Took note of and approved the Cost Audit Report and annexures for FY 2025-26, authenticated by cost auditor M/s R. R. Ahirwar & Associates.

What a corporate guarantee means here

When a parent company guarantees its subsidiary's borrowings, the lender can claim from the parent if the subsidiary fails to repay. The update states there is no immediate impact on the company, except to the extent of the guaranteed amount if the subsidiary is unable to meet its repayment obligations. The guarantee constitutes a contingent liability for the company.

Related party aspect

The guarantee is in favour of a Wholly-Owned Subsidiary, which is a related party. The company states the transaction is proposed to be undertaken on an arm's length basis. Promoter/promoter group interest in the transaction is marked Not Applicable.

Still to be finalised

The detailed terms and conditions of the proposed corporate guarantee, including the lender(s), amount of guarantee, tenure and other commercial terms, are yet to be finalised. The company has said it will make further disclosures upon execution of the definitive documents, wherever applicable.

How investors may read it

The approvals point to a sizeable funding effort around the subsidiary's solar projects. The scale of the guarantee relative to the company's own balance sheet is the main thing to watch, since it sits off the books as a contingent item until called upon. The ₹ 200 Crores contribution, by contrast, is an actual outflow from the parent as and when tranches are infused.

The meeting commenced at 11:23 A.M. and concluded at 11:36 A.M.

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