Ravindra Energy Limited has informed the Exchange about giving corporate guarantee and undertaking to its associate entity Energy in Motion Limited.
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Ravindra Energy Limited (REL) has provided a corporate guarantee of INR 135 Crore to YES Bank Limited on behalf of its associate company Energy in Motion Limited (EIM), in which REL holds a 49.50% equity stake. YES Bank has sanctioned a total credit facility of INR 296 Crore plus a hedge facility of INR 32 Crore to EIM for its business activities, and REL's guarantee covers part of this exposure. The guarantee was approved by REL's board in May 2025 and by shareholders in June 2025. Promoter Mr. Narendra Murkumbi is a common director in both companies, and the company confirms the transaction is at arm's length. REL states this is a non-fund-based contingent liability with no immediate financial impact on the parent company.
For shareholders, this means REL has taken on a contingent liability worth INR 135 Crore — nearly 1.35x the associate's own paid-up capital of INR 100 Crore — which could become a real obligation if EIM defaults. While management frames it as support for EIM's growth, investors should monitor EIM's ability to service the YES Bank facility, since any default would directly hit REL's balance sheet.