Mukka Proteins Limited has approved a corporate guarantee and Standby Letter of Credit (SBLC) worth up to ₹73.58 crore for its subsidiary, United Gulf Fishery Products LLC, based in Oman.

The board of directors granted this approval during a meeting held on October 9, 2026. The financial instruments are intended to secure credit facilities that the subsidiary intends to avail from HDFC Bank Limited.

Details of the corporate guarantee

The company will provide the guarantee, SBLC, and security via fixed deposits to ensure the due repayment of the credit facilities. The aggregate value of these instruments is capped at ₹73,58,30,000 (Rupees Seven Hundred Thirty-Five Million Eight Hundred Thirty Thousand Only).

According to the disclosure filed with stock exchanges, the relevant agreements and documents for this transaction have not yet been executed. The company stated that the terms of the guarantee are considered to be at arm's length.

Impact on listed entity

The provision of these guarantees creates a contingent liability for Mukka Proteins to the extent of the credit facilities availed by the subsidiary. The fixed deposits provided as security will remain subject to the lender's terms.

However, the company retains the right to recover any amount paid or obligations discharged from the subsidiary if the guarantee or SBLC is invoked, or if the security is enforced.

What the numbers show

The disclosure highlights a direct financial linkage between the parent company and its foreign subsidiary. By backing the debt of United Gulf Fishery Products LLC, Mukka Proteins assumes a contingent liability equal to the full amount of the potential borrowing. This structure indicates that the subsidiary's access to capital from HDFC Bank is dependent on the parent's balance sheet strength, rather than solely on its own creditworthiness.

Mukka Proteins has announced that its overseas subsidiary has commenced commercial production at its facility in Oman.

Production milestone in Oman

The commencement of commercial production at the Oman facility marks a key operational milestone for Mukka Proteins in its international business presence. The subsidiary's production start signals the transition from a development or setup phase to active commercial operations in the overseas market.

Significance of the development

The start of commercial production at the Oman subsidiary represents Mukka Proteins' active footprint in international markets. The development underscores the company's efforts to establish and operationalise its overseas manufacturing capabilities.