Engineers India Limited has informed the Exchange about Giving guarantees/indemnity/ becoming a surety for third party
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Engineers India Limited's board approved providing a letter of undertaking to IndusInd Bank in connection with a Rs. 175 crore Bank Guarantee for its joint venture Ramagundam Fertilizers & Chemicals Limited (RFCL). RFCL is a JV of EIL (26% stake), National Fertilizers Limited, and Fertilizer Corporation of India, and needed the BG in place of funding a cash Debt Service Reserve Account (DSRA) for its SBI consortium Rupee Term Loan facility. EIL clarified the undertaking is not a guarantee, surety, indemnity, or letter of comfort. It simply commits EIL to maintain its 26% shareholding in RFCL and not pledge those shares elsewhere until the BG facility expires on 31.03.2026.
This is a routine sponsor undertaking with no direct financial liability on EIL. Shareholders should note that EIL's 26% stake in RFCL is effectively locked (no dilution or pledging) until March 2026, but there is no cash outflow or guarantee exposure for EIL.