HFCL has executed a Second Amended & Restated Deed of Corporate Guarantee to support its subsidiary, HTL Limited. The company has extended a corporate guarantee amounting to ₹265 Crores, effectively replacing the previous arrangement of ₹295 Crores. This financial support, provided at an arm’s length basis, secures the fund-based and non-fund based credit facilities extended by lenders to HTL, which specializes in optical fiber cable manufacturing and connectivity solutions.
Restructuring Financial Guarantees
On May 19, 2026, HFCL formally announced the revision of its existing corporate guarantee for its subsidiary, HTL Limited. The company has moved to a new guarantee structure valued at ₹265 Crores. This action serves as a substitution for the earlier commitment of ₹295 Crores, reflecting an optimization of the financial backing provided to support the subsidiary’s ongoing operations.
Breakdown of Credit Facilities
The revised guarantee covers various facilities extended by a consortium of lenders to HTL. The total amount of ₹265 Crores is structured across the following institutions:
- State Bank of India: ₹105 Crores
- Yes Bank Limited: ₹115 Crores
- Kotak Mahindra Bank Limited: ₹45 Crores
Strategic Context
HFCL maintains a 74% stake in HTL, with the remaining 26% held by the Government of India. HTL is a critical component of the company’s manufacturing ecosystem, producing Optical Fiber Cables (OFC), raw materials such as Aramid Rods and Fiber Reinforced Plastic Rods, and specialized interconnect solutions for the Aerospace, Defence, and Automotive sectors. The company has confirmed that this guarantee is provided on an arm’s length basis and will be accounted for as a contingent liability in its financial statements.
Source: BSE
