Jain Resource Recycling gives ₹150 crore of corporate guarantees for its subsidiary Jain Green Technologies

Jain Resource Recycling Limited has told the exchanges that on 16 Oct 2026 it provided corporate guarantees aggregating ₹150 crore on behalf of its wholly owned subsidiary, Jain Green Technologies Private Limited. The guarantees are in favour of two lenders: ₹50 crore for Yes Bank Limited and ₹100 crore for RBL Bank Limited.

The guarantees secure working capital and other short-term credit facilities that Jain Green Technologies has taken from the two banks. They were approved by the Borrowing and Investment Committee of the board at a meeting on 13 Oct 2026, under the authority the board delegated to it and within the limits approved by the board.

The filing says the guarantees will be treated as a contingent liability in the company’s books and that there is no immediate cash outflow from the company. Because the guarantees are given to a wholly owned subsidiary, the promoter group has no interest in the transaction, and the transaction is exempt from the related party rules under Regulation 23(5)(b).

Inference

A corporate guarantee means the parent would have to pay the lenders if the subsidiary could not. Until that happens, the guarantee is recorded as a contingent liability rather than as a cost, which is how the company describes it here.

The total of ₹150 crore is the maximum covered by these guarantees. The filing does not give the subsidiary’s borrowings or its results, so it does not show how much of the credit has been drawn.