ISGEC Heavy Engineering Ltd. announced on June 1, 2026, the issuance of a counter guarantee for USD 0.902 million (approximately Rs. 8.58 crores). This is in continuation of an earlier approval to issue guarantees, including counter guarantees, standby letters of credit, and bonds, for an aggregate amount not exceeding USD 1.1957 million (approximately Rs. 11.23 crores). The support is for its wholly owned subsidiary, Isgec Eswatini (Proprietary) Limited.
Subsidiary Support
ISGEC Heavy Engineering Ltd. has confirmed the issuance of a significant financial instrument to support its overseas operations. On June 1, 2026, the company issued a counter guarantee amounting to USD 0.902 million, which translates to approximately Rs. 8.58 crores. This action follows a board approval that authorized guarantees totaling up to USD 1.1957 million (approximately Rs. 11.23 crores).
Purpose of Guarantees
These financial arrangements are designed to facilitate the operations of ISGEC’s wholly owned subsidiary, Isgec Eswatini (Proprietary) Limited, located in Eswatini. The guarantees, which include counter guarantees, standby letters of credit (SBLCs), and bonds, are being issued through the company’s bankers. The primary objective is to enable the subsidiary’s bankers to issue performance bank guarantees and other bank guarantees or bonds on behalf of Isgec Eswatini.
Facilitating Business Operations
The issuance of these guarantees will directly support Isgec Eswatini in securing necessary financial instruments for its ongoing orders. This includes providing bank guarantees, performance guarantees, and bonds to customers and customs authorities in Eswatini. The company has communicated these details to the stock exchanges and will upload the information on its website.
Source: BSE
