Hazoor Multi Projects Approves ₹50 Crore Guarantee for Subsidiary Financing

Hazoor Multi Projects Limited's Board of Directors has approved a corporate guarantee of ₹50 crore for its wholly-owned subsidiary, Square Port Shipyard Private Limited. This backing will support credit facilities totaling ₹50 crore from Bank of Baroda, including a ₹45 crore term loan and a ₹5 crore cash credit line.

Board Approves Guarantee

Hazoor Multi Projects Limited announced on March 25, 2026, that its Board of Directors greenlit a corporate guarantee for subsidiary Square Port Shipyard Private Limited. The total value of this guarantee is ₹50 crore.

This financial support is aimed at securing credit facilities from Bank of Baroda, specifically a ₹45 crore term loan and a ₹5 crore cash credit line for the subsidiary.

Why the Guarantee Matters

The corporate guarantee demonstrates Hazoor Multi Projects' commitment to supporting its subsidiary's financial activities. It ensures Square Port Shipyard can access essential banking credit lines.

However, this guarantee represents a contingent liability for Hazoor Multi Projects. This means the parent company is not directly responsible for repaying the loans, but would become liable if its subsidiary fails to meet its obligations.

Company Background

Hazoor Multi Projects operates in construction and infrastructure development, with additional interests in shipbuilding via its subsidiary, Square Port Shipyard Private Limited.

The company has a history of providing corporate guarantees to its subsidiaries to help them secure credit.

Impact of the Guarantee

With the guarantee in place, Square Port Shipyard Private Limited can now proceed with securing the approved credit facilities from Bank of Baroda, funding its operational or expansionary needs.

Hazoor Multi Projects now has a contingent financial obligation. While the guarantee is on an arm's length basis and has no immediate impact on the parent's balance sheet, its potential future liability is established.

Key Risks to Monitor

The main risk is Square Port Shipyard Private Limited defaulting on its credit facilities. If this occurs, Hazoor Multi Projects Limited would be obligated to repay the outstanding loan amounts to Bank of Baroda.

Industry Context

Hazoor Multi Projects operates in the construction and infrastructure sector, alongside peers such as Larsen & Toubro and PNC Infratech. While these companies also handle significant project financing and may issue guarantees for their subsidiaries, a direct comparison for this specific guarantee to a shipbuilding unit is difficult.

What Investors Should Track

Investors will closely watch Square Port Shipyard Private Limited's financial performance and operational execution, particularly its ability to service its debt obligations.

The overall financial health and debt levels of Hazoor Multi Projects Limited are also key. Any operational stress in the subsidiary could lead to potential future liabilities for the parent.