Lloyds Metals And Energy Limited — Important, 12-03-2025: General Updates

Lloyds Metals and Energy Limited has entered into a Deed of Corporate Guarantee with Catalyst Trusteeship Limited to provide security for senior, secured, redeemable non-convertible debentures to be issued by Mahaprabhu Projects Private Limited. The total guarantee amount is ₹2,500 crores, aimed at enhancing the creditworthiness of the debenture issuance. The company will also receive a counter-guarantee from Thriveni Earthmovers Private Limited, amounting to ₹1,745 crores, which is meant to mitigate the risk associated with the corporate guarantee. Both transactions are conducted at arm's length and involve promoter group interests, specifically relating to Mr. Balasubramanian Prabhakaran, who is involved in both companies. This strategic move strengthens the company’s financial framework amid significant financing arrangements, indicating potential growth but requiring close monitoring due to inherent risks from related-party transactions.