Deepak Nitrite guarantees US $78.43m loan for Oman subsidiary
Deepak Nitrite Limited has provided a corporate guarantee for a US $78.43 million term loan to its 51%-owned subsidiary, Deepak Oman Industries (SFZ) LLC. The facility is secured by Bank Muscat SAOG, creating a contingent liability for the listed entity.

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deepak nitrite has executed a corporate guarantee to secure a term loan of US $78.43 million for its subsidiary, Deepak Oman Industries (SFZ) LLC. The guarantee was issued on July 23, 2026, in favor of Bank Muscat SAOG and covers the principal amount along with interest and other charges. This financial commitment creates a contingent liability for the company equivalent to the loan amount secured for the subsidiary.
The transaction was disclosed pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The disclosure was signed by Arvind Bajpai, Company Secretary.
Key Details of the Guarantee
| Particulars | Details |
|---|---|
| Beneficiary | Bank Muscat SAOG |
| Borrower | Deepak Oman Industries (SFZ) LLC |
| Loan Amount | US $78.43 Million |
| Date of Guarantee | July 23, 2026 |
| Nature of Liability | Contingent Liability |
Subsidiary Structure and Terms
Deepak Oman Industries (SFZ) LLC is incorporated in the Sultanate of Oman. Deepak Nitrite Limited currently holds 51% of the equity share capital of DOIL, while the remaining 49% is held by promoter or promoter entities. The transaction to provide the corporate guarantee was conducted on an arm's length basis. As part of the arrangement, Deepak Nitrite Limited will charge a guarantee commission from DOIL.
Financial Impact
The execution of the deed of guarantee marks a formal financial backing by the parent company for the subsidiary's debt obligations. The guarantee ensures that Bank Muscat SAOG has a security cover for the credit facility extended to Deepak Oman Industries (SFZ) LLC. The contingent liability arises to the extent of the term loan and associated interest and charges.
Historical Stock Returns for Deepak Nitrite
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.19% | +2.66% | +3.40% | +8.92% | -3.73% | -16.76% |
How will the contingent liability of US $78.43 million impact Deepak Nitrite's debt-to-equity ratio and credit rating in the upcoming fiscal quarters?
What specific expansion or operational projects is Deepak Oman Industries planning to fund with this term loan, and what is the expected timeline for ROI?
Given the 51% ownership stake, how does the arm's length guarantee commission structure affect the consolidated net profit margins of Deepak Nitrite?


































