Client Overview

A water treatment company based in Pune recently secured a large order of INR 200 Crore, nearly equivalent to its annual turnover. While this presented a strong growth opportunity, it also created an immediate need for timely and structured working capital support.

Challenges

The company required INR 50 Crore in additional working capital limits within a short timeframe. Existing lender exposure was already INR 60 Crore plus, with partial issuance of bank guarantees and differing credit views across lenders. The situation required careful structuring beyond a simple limit enhancement.

Shah & Kirtane’s Approach

Shah & Kirtane focused on early planning and creating optionality by onboarding a leading private sector bank alongside the existing lender. This enabled parallel credit evaluation and helped build flexibility into the overall structure while creating a competitive lending environment.

Structure

A practical and executable structure was implemented with a 40:60 exposure split between two banks. Bank guarantees were shared, while LC and CC facilities were streamlined with one lender. LAP exposure was repositioned to unlock additional fund-based capacity.

Outcome

The transaction was executed seamlessly within tight timelines, reducing dependence on a single lender and strengthening overall banking relationships. The structure also provides scalability for future growth as the business expands.