HFCL Extends ₹265 Crore Corporate Guarantee for HTL Limited, Replacing Earlier ₹295 Crore Guarantee
HFCL Limited extended a corporate guarantee of ₹265 crore on behalf of its subsidiary HTL Limited, replacing an earlier guarantee of ₹295 crore. The guarantee is in favor of SBICAP Trustee Company Limited, securing fund-based and non-fund-based facilities for HTL. The ₹265 crore comprises ₹105 crore from State Bank of India, ₹115 crore from Yes Bank Limited, and ₹45 crore from Kotak Mahindra Bank Limited. HFCL holds 74% of HTL's share capital.
The corporate guarantee could have a moderate impact as it involves a significant financial commitment and is related to the financial health of its subsidiary, HTL.
The announcement provides factual information about the corporate guarantee extended by HFCL for its subsidiary, HTL, without expressing any positive or negative bias.
HFCL Limited has extended a Corporate Guarantee on behalf of its subsidiary, HTL Limited, to the extent of ₹265 crore, replacing an earlier guarantee of ₹295 crore. This Second Amended & Restated Deed of Corporate Guarantee is in favor of SBICAP Trustee Company Limited, acting as a Security Trustee for the benefit of HTL's Working Capital Lenders. The guarantee secures various fund-based and non-fund-based facilities availed/to be availed by HTL. The details are as per the SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.
HTL is a subsidiary of HFCL, with HFCL holding 74% of its paid-up share capital and the Government of India owning the remaining 26%. HTL manufactures Optical Fiber Cables (OFC) and provides passive connectivity solutions. It also produces key raw materials for OFC, such as Aramid Rods, Fiber Reinforced Plastic Rods, and Impregnated Glass Fiber Reinforcement. Additionally, HTL provides electrical wiring interconnect solutions for the Aerospace & Defence and Automotive & Industrial sectors.
The ₹265 crore guarantee comprises ₹105 crore from State Bank of India, ₹115 crore from Yes Bank Limited, and ₹45 crore from Kotak Mahindra Bank Limited. The Corporate Guarantee is given at arm’s length basis and will be disclosed as contingent liabilities in the financial statements of HFCL Limited.
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HFCL Limited filed this with the NSE as a statutory disclosure, categorised under general announcements. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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