Vraj Iron and Steel Limited has announced an increase in its corporate guarantee for its associate company, Vraj Metaliks Private Limited. The guarantee has been raised from ₹25.00 crores to ₹35.00 crores in favor of HDFC Bank Limited.

Corporate Guarantee Enhancement Details

The company has increased its existing corporate guarantee for Vraj Metaliks Private Limited, with the enhanced guarantee amount and related details outlined below:

Promoter Interest and Transaction Nature

The disclosure reveals significant promoter involvement in the transaction. The promoter group, along with Mr. Vijay Anand Jhanwar, who serves as Promoter and Managing Director of Vraj Iron and Steel Limited, has expressed interest in this transaction.

The relationship structure shows that:

• Promoter entities are related to Vraj Iron and Steel Limited in the capacity of holding companies
• Vraj Metaliks Private Limited operates as an associate company of the listed entity
• The proposed transaction is being undertaken on an arm's length basis in the ordinary course of business

Financial Impact and Risk Assessment

The enhanced corporate guarantee represents a contingent liability for Vraj Iron and Steel Limited. According to the company's disclosure, this guarantee has been provided on behalf of the associate company, and at this point, there is no direct impact of this guarantee on the listed company's operations.

Regulatory Compliance

The announcement fulfills the requirements under Regulation 30 read with Para B of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The company has provided comprehensive disclosures regarding the nature of the guarantee, promoter interest, and potential impact on the listed entity.

The enhancement of the corporate guarantee from ₹25.00 crores to ₹35.00 crores reflects the company's continued support for its associate company's business expansion and operational requirements while maintaining regulatory compliance and transparency with stakeholders.

Vraj Iron and Steel Limited has successfully commissioned its 15MWp solar power plant in Chhattisgarh, marking a significant milestone in the company's renewable energy expansion. The commissioning was completed on December 18, 2025, with power generation commencing immediately.

Solar Plant Details

The solar power facility has been strategically located at Village Mohbhattha, Tehsil Berla, District Bemetara in Chhattisgarh. The plant specifications and operational details are outlined below:

Regulatory Approvals

The company secured all necessary regulatory clearances before commissioning the solar facility. Key approvals were obtained from:

• Chhattisgarh State Renewable Energy Development Agency (CREDA)
• Chhattisgarh State Power Transmission Company Limited (CSPTCL)

The metering infrastructure has been installed and is operational, enabling immediate power generation tracking and grid connectivity.

Strategic Significance

The commissioning of this solar power plant represents a significant step towards enhancing Vraj Iron and Steel's renewable energy capacity. The company views this development as crucial for supporting its sustainable operations strategy and reducing its carbon footprint.

This renewable energy initiative aligns with the broader industry trend of steel companies investing in clean energy solutions to meet environmental compliance requirements and operational efficiency goals. The 15MWp capacity addition strengthens the company's energy security while contributing to sustainable manufacturing practices.

Compliance and Disclosure

The company announced this development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made to both BSE Limited and NSE Limited, ensuring transparency with stakeholders regarding this significant operational milestone.