Oswal Pumps Ltd. Issues Rs 136.16 crore Guarantees for Solar Unit
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– Oswal Pumps Ltd. backs its solar arm with Rs 136.16 crore of guarantees to fund renewable‑energy projects.
- Rs 86.16 crore guaranteed for a State Bank of India loan and Rs 50.00 crore guaranteed for a Yes Bank loan to Oswal Solar Energy Private Limited (formerly Oswal Solar Structure Pvt Ltd).
- The guarantees are contingent liabilities – no cash leaves the balance sheet unless the subsidiary defaults, though a default could lift Oswal’s leverage ratios.
- Funding is earmarked for solar‑energy projects, letting the group expand into renewables without issuing new equity and aligning with India’s solar‑power push.
- If the projects proceed on schedule, they could generate additional earnings and cash flow, while the primary risk remains the subsidiary’s ability to service the loans and complete the installations.
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