KG Petrochem Limited has issued a corporate guarantee of ₹24.00 crores in favour of HDFC Bank to support HEX Exports Private Limited's credit facility requirements. The company made this disclosure on January 5, 2026, in compliance with regulatory obligations under SEBI listing requirements.

Corporate Guarantee Details

The guarantee arrangement involves KG Petrochem Limited acting as guarantor for HEX Exports Private Limited's borrowing from HDFC Bank. The transaction has been structured to meet the credit facility needs of the borrower while ensuring compliance with regulatory frameworks.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also referenced the SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, ensuring comprehensive regulatory compliance.

The transaction has been conducted at arm's length basis with no promoter, promoter group, or group companies having any interest in this arrangement. This structure ensures transparency and adherence to corporate governance standards.

Financial Impact Assessment

According to the company's disclosure, no immediate financial or operational impact is anticipated from this guarantee arrangement. The company stated that impact would only materialise in the event of guarantee invocation by the lender, which could potentially affect the company's financial position.

Corporate Information

KG Petrochem Limited, headquartered in Jaipur, Rajasthan, operates with CIN L24117RJ1980PLC001999 and trades on BSE under scrip code 531609. The disclosure was signed by Company Secretary and Compliance Officer Navita Khunteta, ensuring proper authorisation and documentation of the corporate guarantee arrangement.

KG Petrochem Ltd. has announced several significant decisions made during its Board of Directors meeting on April 1, 2025. The company, known for its petrochemical operations, has set the stage for potential expansion and strategic moves in the near future.

Investment Limit Increase

The board has given its approval to raise the investment limits up to Rs 100.00 crores. This substantial increase in investment capacity could potentially allow KG Petrochem to explore new opportunities, expand its operations, or diversify its portfolio.

Corporate Guarantee for Suave Casa Ideas

In a move that highlights the interconnected nature of business groups, KG Petrochem's board has approved a corporate guarantee of Rs 20.00 crores in favor of HDFC Bank Limited. This guarantee is intended to secure credit facilities for Suave Casa Ideas Private Limited, a company that shares the same group of promoters with KG Petrochem.

Key points of the corporate guarantee include:

• Amount: Rs 20.00 crores
• Beneficiary: HDFC Bank Limited
• Purpose: To secure credit facilities for Suave Casa Ideas Private Limited
• Guarantee Commission: KG Petrochem will receive 0.50% per annum for providing this guarantee
• Approval: The Audit Committee has given prior approval for the guarantee at arm's length terms

Related Party Transactions

The board has also approved related party transactions, though specific details were not provided in the announcement.

Upcoming Extraordinary General Meeting

Shareholders will have the opportunity to vote on these decisions at an Extraordinary General Meeting (EGM) scheduled for April 28, 2025. The company has arranged for remote e-voting to facilitate shareholder participation:

• E-voting Period: April 25-27, 2025
• Cut-off Date for Voting Eligibility: April 21, 2025

It's important to note that all the decisions made by the board are subject to shareholder approval at this upcoming EGM.

Financial Implications

The Rs 20.00 crore corporate guarantee will be disclosed as a contingent liability in KG Petrochem's financial statements. This accounting treatment reflects the potential financial obligation that may arise if Suave Casa Ideas defaults on its credit facilities with HDFC Bank.

Conclusion

These board decisions signal KG Petrochem's intent to potentially expand its investment activities and support associated businesses. Shareholders will play a crucial role in determining the company's path forward as they vote on these proposals at the end of April. The outcomes of the EGM could have significant implications for KG Petrochem's future strategic direction and financial position.