Mazagon Dock Shipbuilders Ltd. disclosed that its Board of Directors, at a meeting held on 27 October 2026 (commencing at 1030 hrs IST and concluding at 1440 hrs IST), approved availing additional credit facilities of ₹1,250 Crores (Rupees One Thousand Two Hundred Fifty Crores only) with State Bank of India, Mumbai.
The purpose of this credit facility is specifically for issuing a Standby Letter of Credit (SBLC) in favour of State Bank of India, Sri Lanka, for the benefit of the company's subsidiary, Colombo Dockyard PLC (CDPLC), Sri Lanka. The terms of this arrangement were agreed upon with both CDPLC and the Bank.
The disclosure is made pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, and references SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/113762/2026 dated 30 January 2026. An annexure provides further details:
- Party Name: Colombo Dockyard PLC, Sri Lanka (CDPLC)
- Promoter Interest: The promoters/promoter group/group companies have no interest in this transaction.
- Transaction Details: CDPLC requires bank guarantees (BGs) for its shipbuilding contracts against advances received from clients. Due to limited resources relative to its order book, CDPLC requested Mazagon Dock (its holding company) to provide comfort to the BG-issuing bank. This has been arranged through a back-to-back Standby Letter of Credit (SBLC) facility with State Bank of India, Mumbai, which will enable State Bank of India, Sri Lanka, to issue the necessary BGs to CDPLC's clients.
- Amount Involved: ₹1,250 Crores
- Cost Arrangement: All costs related to the SBLC issuance (including taxes, directly attributable costs, and out-of-pocket expenses) will be borne by Mazagon Dock but reimbursed by CDPLC with an additional markup of 10%.
- Financial Impact: In the event CDPLC defaults on honoring a bank guarantee, the liability will fall upon Mazagon Dock as the provider of the back-to-back SBLC.
The disclosure was signed by Lalatendu Acharya, Company Secretary and Compliance Officer (FCS-6569).