KEC International Ltd. has issued a corporate guarantee valued at $26.67 million on November 3, 2025, in support of its subsidiary, Al Sharif Group & KEC Limited Company. This move is part of the company's compliance with the Securities and Exchange Board of India (SEBI) regulations, specifically under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The guarantee is aimed at facilitating banking support from an overseas bank, which has extended its financial services to the subsidiary. This strategic decision reflects KEC’s commitment to bolster its subsidiary's financial standing in the international market.
As detailed in the company’s announcement, the corporate guarantee does not involve any interest from the promoter or promoter group, ensuring that the transaction is conducted at "arms-length." KEC International has clarified that this corporate guarantee serves as a contingent liability for the company but currently does not have any adverse impact on its financial health. The terms and conditions of the agreement were not elaborated upon, but the guarantee's issuance is perceived as a strategic financial maneuver to support ongoing operations and enhance the subsidiary's access to necessary funds.
The announcement has been communicated to the National Stock Exchange of India and BSE Limited, with the company’s stock symbol being KEC and scrip code 532714, respectively. This strategic move by KEC International is anticipated to strengthen its operational framework while providing necessary financial backing for its subsidiary's projects. Investors and stakeholders are advised to monitor the implications of this guarantee as the company continues to navigate its financial landscape amidst ongoing global market challenges.