UltraTech Cement Limited's Board of Directors approved the issuance of a corporate guarantee during their meeting held on 19th October, 2026. The meeting commenced at 12:00 noon and concluded at 1:40 p.m.
The corporate guarantee is for up to USD 55 million (approximately ₹412 crore at current exchange rates) and is being provided in connection with a loan to be obtained by UHG Holdings IFSC Private Limited, an associate company of UltraTech Cement.
Key Details of the Transaction
- Beneficiary: UHG Holdings IFSC Private Limited
- Guarantee Amount: USD 55 million
- Nature of Guarantee: Irrevocable and unconditional corporate guarantee
- Purpose: To support UHG Holdings in pursuing its business activities through loan financing
Ownership Structure and Related Party Status
Promoter and promoter group companies have significant interests in UHG Holdings:
- Grasim Industries Limited (Promoter) holds 9% shareholding in UHG Holdings
- Hindalco Industries Limited (Promoter Group) holds 50% shareholding in UHG Holdings
- UHG Holdings is classified as a related party of UltraTech Cement Limited
- The transaction has been undertaken on an arm's length basis
Financial Impact
The corporate guarantee constitutes a contingent liability for UltraTech Cement Limited. According to the disclosure, there is no immediate impact on the company except to the extent of the amount for which the corporate guarantee will be provided (USD 55 million).
The disclosure was signed by Dhiraj Kapoor, Company Secretary and Compliance Officer, on 19th October, 2026 at 13:42:20 IST.