Thermax Limited has announced the incorporation of a wholly owned step-down subsidiary in Saudi Arabia, marking another milestone in the company's international expansion strategy. The new entity, Thermax Energy Solutions Company, received its Certificate of Incorporation from the Ministry of Commerce, Saudi Arabia on January 28, 2026.

Subsidiary Structure and Ownership

The incorporation was carried out by Thermax Babcock and Wilcox Energy Solutions Limited (TBWES), which is a wholly owned subsidiary of Thermax Limited. This structure makes Thermax Energy Solutions Company a wholly owned step-down subsidiary of the parent company.

Business Operations and Capital Structure

The newly incorporated entity will focus on providing comprehensive support services to its parent organization. The main activities of Thermax Energy Solutions Company include:

• On-site services and maintenance operations
• Supervision related services
• Marketing support to parent entity

The company plans to infuse capital of 25,00,000 INR into the Saudi Arabian subsidiary in due course to support its operational requirements.

Regulatory Compliance

Thermax Limited has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has informed both BSE Limited and National Stock Exchange of India Limited about this corporate development.

As a newly incorporated wholly owned step-down subsidiary, Thermax Energy Solutions Company will be classified as a related party under regulatory frameworks. The incorporation aligns with standard corporate governance practices and regulatory requirements for listed entities expanding their international operations.

Strategic Implications

This incorporation represents Thermax's continued focus on strengthening its presence in the Middle East region. The establishment of a dedicated entity in Saudi Arabia will enable the company to provide localized services and support to its operations in the region, potentially enhancing operational efficiency and customer service capabilities.

Thermax Limited has received a credit rating reaffirmation from Crisil Ratings Limited, with the rating agency maintaining its positive assessment while significantly enhancing the company's bank loan facilities. The development was formally communicated to stock exchanges on January 20, 2026, pursuant to regulatory disclosure requirements.

Credit Rating Details

Crisil Ratings has reaffirmed Thermax's credit ratings across both long-term and short-term categories while substantially increasing the total bank loan facilities. The rating reaffirmation demonstrates the agency's continued confidence in the company's financial stability and creditworthiness.

Bank Facility Distribution

The enhanced bank facilities of ₹5,500.00 crores are distributed across multiple banking partners, providing Thermax with diversified funding sources. The facilities are structured into fund-based and non-fund based categories across various leading financial institutions.

Fund-Based Facilities (₹650.00 crores)

The fund-based facilities are distributed among seven banks, with ICICI Bank Limited providing the largest allocation at ₹170.00 crores, followed by Axis Bank Limited and The Hongkong and Shanghai Banking Corporation Limited at ₹150.00 crores each.

Non-Fund Based Facilities (₹4,420.00 crores)

The non-fund based limits constitute the majority of the facilities, with ICICI Bank Limited leading at ₹1,350.00 crores, followed by Axis Bank Limited at ₹950.00 crores (combining two separate limits), and Citibank N.A. at ₹600.00 crores.

Regulatory Compliance

The rating reaffirmation was communicated through a formal letter from Crisil Ratings dated January 19, 2026, at 6:45 PM IST. Thermax promptly disclosed this information to BSE Limited and National Stock Exchange of India Limited on January 20, 2026, ensuring compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Future Facility Utilization

According to Crisil's communication, the company has 180 days from January 19, 2026, to avail the proposed facilities. If the facilities are not utilized within this timeframe, a fresh letter of revalidation from Crisil Ratings will be required. The rating agency maintains continuous surveillance of all assigned ratings and reserves the right to revise them based on new information or changing circumstances.