UltraTech Cement Limited’s Board of Directors has approved the issuance of a corporate guarantee amounting to USD 55 million. This guarantee is in connection with a loan to be obtained by UHG Holdings IFSC Private Limited, an associate company. The decision, made on October 19, 2026, was disclosed to the stock exchanges. While the guarantee represents a contingent liability, it is undertaken on an arms-length basis.
Corporate Guarantee Approved for Associate Company
On October 19, 2026, the Board of Directors of UltraTech Cement Limited convened a meeting where they approved the issuance of a corporate guarantee. This guarantee will be provided to support a loan facility up to an amount of USD 55 million. The beneficiary of this guarantee is UHG Holdings IFSC Private Limited, which is identified as an associate company of UltraTech Cement.
Transaction Details and Impact
The meeting, which commenced at 12 noon and concluded at 1:40 p.m. on the same day, saw the board ratify this significant financial commitment. The details of the corporate guarantee, including its terms and conditions, are further elaborated in Annexure A of the disclosure. The announcement specifies that Grasim Industries Limited and Hindalco Industries Limited, both promoter entities, have shareholdings in UHG Holdings. The transaction is stated to be undertaken on an arm’s length basis.
The corporate guarantee represents an irrevocable and unconditional commitment. While it is being provided to enable UHG Holdings to pursue its business operations, the company notes that there is no direct impact on UltraTech Cement, except to the extent of the amount for which the guarantee is provided. The corporate guarantee constitutes a contingent liability for UltraTech Cement Limited.
Source: BSE
