Key Event Details
EKI Energy Services Limited (Scrip Code: 543284) entered into a binding Voluntary Emission Reduction Purchase Agreement dated April 8, 2022 (as amended by Addendum No. 1) with Vitol Asia Pte Ltd, Singapore ("Vitol"). Under this agreement, the Company's bank, ICICI Bank Limited, issued a counter guarantee in favor of The Hongkong and Shanghai Banking Corporation Limited, Singapore ("HSBC"), and HSBC subsequently issued a Bank Guarantee of USD 10 million in favor of Vitol.
Recent Developments
The Company has received communication from its bank regarding the invocation and encashment of the Bank Guarantee by Vitol amounting to USD 10 million. This action follows a Notice of Termination dated November 4, 2026 received from Vitol, which alleged an Event of Default under the agreement.
Company's Position
The Company disputes the alleged Event of Default and the consequent termination and invocation of the Bank Guarantee. EKI Energy believes these actions are without basis and not in accordance with the terms of the Agreement. The Company intends to contest the matter through appropriate legal proceedings, including arbitration in accordance with the dispute resolution provisions of the Agreement, and reserves all its rights and remedies in this regard.
Financial Position Assessment
The Company states it continues to have a sound financial position. As per the audited financial results for the year ended March 31, 2026, the total equity (net worth) of the Company stood at ₹418.93 crore on a standalone basis (₹382.48 crore on a consolidated basis). The Company asserts it is well placed to meet its obligations and continue its operations in the ordinary course.