ISGEC Heavy Engineering announced the issuance of a Standby Letter of Credit (SBLC) worth CAD 2 million on March 16, 2026. This action fulfills an earlier approval from the Board on November 13, 2025. The SBLC supports an additional Working Capital Loan facility for its wholly-owned Canadian subsidiary, Eagle Press & Equipment Co. Ltd., ensuring necessary liquidity for executing new orders.
Finalization of Working Capital Support
ISGEC Heavy Engineering Limited has confirmed the execution of a financial instrument previously approved by its Board of Directors. This issuance relates to providing security for additional working capital needs of its Canadian subsidiary, Eagle Press & Equipment Co. Ltd.
Key Financial Details
The Board, during its meeting on November 13, 2025, had greenlit the proposal to issue a Standby Letter of Credit (SBLC) not exceeding CAD 2 million (approximately Rs. 13 Crores). This approval was necessary to secure an additional Working Capital Loan facility for the subsidiary from its bankers.
Subsequent to the approval, the Company formally issued the Standby Letter of Credit of CAD 2 million on March 16, 2026. The beneficiary of this SBLC is the Royal Bank of Canada, acting as the banker for the wholly-owned subsidiary.
Nature of Transaction
The transaction is categorized as a guarantee/surety provided for a wholly owned subsidiary. The disclosures confirm that the promoter/promoter group companies have no interest in this transaction, and it is understood to be conducted at “arm’s length”. The impact of this issuance is positive, as it directly assists the subsidiary, Eagle Press, in securing the necessary funds to execute expected new orders and manage an increased level of business.
The company confirmed that no other changes to the previously disclosed information have occurred, other than the actual issuance of the SBLC.
Source: BSE
