Isgec Heavy Engineering Limited has informed the Exchange about Update - Issuance of Standby Letter of Credit
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Isgec Heavy Engineering has issued a Standby Letter of Credit (SBLC) of CAD 2 million (about Rs. 13 crores) in favour of Royal Bank of Canada on March 16, 2026. This SBLC is to back an additional working capital loan that will be drawn by its wholly-owned Canadian subsidiary, Eagle Press & Equipment Co. Ltd. The move follows Board approval given on November 13, 2025. The company stated the funds will help the subsidiary execute expected new orders and support increased business activity. Promoter group and other group companies have no interest in this transaction.
This is a routine corporate guarantee to help the Canadian subsidiary access working capital for business growth. It represents a modest contingent liability (around Rs. 13 crores) for the parent company and is unlikely to materially affect shareholders, though it signals continued investment in the overseas subsidiary.