Karamtara Engineering Limited promoters guarantee 11 facilities

Karamtara Engineering Limited’s promoter selling shareholders, Rajiv Singh and Tanveer Singh, have issued personal guarantees covering 11 disclosed company facilities. The largest guarantee supports Rs 1,920 crore of working-capital facilities in favour of Axis Trustee Services Limited under a May 23, 2025 deed, with lender invocation available on default.

Which Karamtara facilities carry promoter guarantees?

Karamtara’s 11 disclosed personal guarantees span working-capital facilities, term loans, equipment-specific term loans and external commercial borrowings, or ECBs. Rajiv Singh and Tanveer Singh provided every guarantee named in the disclosure, rather than the guarantees being divided between the two promoter selling shareholders. The deeds were issued between March 29, 2023 and August 26, 2025.

The single largest disclosed item is the Rs 1,920 crore working-capital facilities in favour of Axis Trustee Services Limited. Working-capital facilities are financing lines used for the company’s operating funding needs, while term loans are borrowings with stated loan terms. Karamtara also has a Rs 100 crore working-capital facility guaranteed in favour of DBS Bank India Limited, taking the two disclosed rupee working-capital lines to Rs 2,020 crore.

The table totals the stated rupee facility amounts attached to 10 guarantee disclosures, not Karamtara’s reported outstanding borrowings. The eleventh guarantee covers a separate US-dollar ECB with DBS Bank India Limited, so it is not added to the rupee total. The disclosure does not provide a rupee conversion for that facility or state the amount outstanding under any of the 11 facilities.

How large is Karamtara’s promoter-guaranteed working-capital exposure?

Karamtara’s disclosed promoter-guaranteed working-capital facilities amount to Rs 2,020 crore, with the Axis Trustee Services Limited facilities accounting for about 95% of that rupee working-capital amount. The Axis guarantee was executed on May 23, 2025, while the Rs 100 crore DBS Bank India Limited working-capital guarantee was executed earlier, on May 31, 2024.

The concentration arises because the Axis facilities alone are substantially larger than each of the other rupee-denominated facilities listed. The next-largest stated rupee item is a Rs 152 crore term-loan borrowing guaranteed for Yes Bank Limited on August 21, 2023. The Rs 1,920 crore Axis amount is therefore more than 12 times the Rs 152 crore Yes Bank facility amount.

The Rs 2,533.68 crore total for the 10 rupee-denominated items is also weighted toward operating finance rather than term lending. Working-capital facilities represent Rs 2,020 crore, compared with Rs 453.68 crore across seven term-loan and equipment-loan guarantees and Rs 60 crore for the rupee-denominated ECB guaranteed to Bank of Bahrain and Kuwait B.S.C. on February 5, 2025. That mix would persist only while the stated facilities and their associated guarantees remain in place.

Which lenders and dates define Karamtara’s guarantees?

Karamtara’s guarantees name seven lenders or counterparties: Axis Trustee Services Limited, DBS Bank India Limited, HDFC Bank Limited, Tata Capital Financial Services Limited, Bank of Bahrain and Kuwait B.S.C., Yes Bank Limited and First Abu Dhabi Bank PJSC. The earliest listed deed is dated March 29, 2023 for a Rs 14 crore Tata Capital equipment-specific term loan, and the latest is dated August 26, 2025 for a Rs 119 crore First Abu Dhabi Bank term-loan borrowing.

HDFC Bank Limited has two separate guaranteed term loans, for Rs 50 crore under a May 17, 2024 deed and Rs 100 crore under an August 29, 2024 deed. Tata Capital Financial Services Limited has three equipment-specific term-loan guarantees: Rs 14 crore dated March 29, 2023, Rs 4.68 crore dated October 20, 2023, and another Rs 14 crore dated August 31, 2023. These five HDFC and Tata Capital facilities together represent Rs 182.68 crore of stated amounts.

The remaining disclosed rupee guarantees include Rs 60 crore of ECB borrowing with Bank of Bahrain and Kuwait B.S.C., Rs 152 crore of term-loan borrowing with Yes Bank Limited, and Rs 119 crore of term-loan borrowing with First Abu Dhabi Bank PJSC. DBS Bank India Limited appears twice: once for the Rs 100 crore working-capital facility dated May 31, 2024 and once for the separate US-dollar ECB dated May 5, 2025. The rupee working-capital facility and the foreign-currency ECB are separately disclosed facilities.

What recourse do Karamtara’s lenders have under these guarantees?

If Karamtara defaults, the relevant lender can invoke Rajiv Singh’s and Tanveer Singh’s personal guarantees up to the outstanding loan or facility amount. This distinguishes the stated facility limits, which total Rs 2,533.68 crore for the 10 rupee-denominated items, from the amount potentially claimable at a particular time, which depends on the outstanding amount when a default occurs.

The promoter selling shareholders received no consideration for issuing the 11 guarantees. Karamtara states that the guarantees were provided to secure its loan-repayment obligations in accordance with lender requirements, and that the company has no obligations under the terms of the personal guarantees. The guarantees are typically revocable only after Karamtara has satisfied its repayment obligations to the lenders.

The guarantees create lender recourse to the two promoters alongside the company’s repayment commitment, but the disclosure does not state that a guarantee has been invoked or that Karamtara has defaulted. It also does not disclose collateral values, repayment schedules, guarantee caps that differ from outstanding amounts, or the duration of the US-dollar ECB. Those matters would affect the practical extent and timing of any potential claim.

Conclusion

Karamtara’s financing disclosure shows that Rajiv Singh and Tanveer Singh remain personally committed across a broad set of company funding arrangements, with Rs 2,020 crore of disclosed rupee working-capital facilities forming the largest category. The stated rupee amounts across 10 guarantee items total Rs 2,533.68 crore, while one additional DBS Bank India Limited ECB is denominated in US dollars and excluded from that total.

The next point to watch is repayment or replacement of the facilities because the disclosure says the personal guarantees are typically revocable only after Karamtara satisfies its lender obligations. Any later disclosure of outstanding balances, repayment, refinancing or release of the May 23, 2025 Axis guarantee would clarify whether the promoters’ personal support remains attached to the Rs 1,920 crore working-capital facilities.