Board Approves Rs 17.75 Crore Corporate Guarantee and Land Acquisition in Odisha
RDB Infrastructure And Power Ltd., formerly RDB Realty & Infrastructure Limited, announced that its Board of Directors approved two significant corporate actions: issuing a guarantee for a loan facility and acquiring land in Jharsuguda, Odisha.The Board meeting addressed the issuance of a Corporate Guarantee in favor of RDB Real Estate Constructions Limited. This guarantee secures a credit facility amounting to Rs 17.75 Crore sanctioned by Axis Bank. The company confirmed that the provision of this guarantee is a contingent liability for RDB Infrastructure and Power Ltd.
According to the details released, the corporate guarantee was issued on an arm's length basis and in the ordinary course of business. RDB Real Estate Constructions Limited, which is a group company, benefits from the guarantee provided by the parent company. The promoters of both entities are common, with independent directors serving on the boards of both RDB Infrastructure And Power Ltd. and RDB Real Estate Constructions Limited.
In addition to the financial undertaking, the Board also approved the acquisition of land located in Jharsuguda, Odisha. This land parcel comprises an aggregate area of 1.56 acres.
Details regarding the guarantee and corporate structure are summarized below:
| Feature | Details |
|---|---|
| Guaranteed Party | RDB Real Estate Constructions Limited |
| Financing Obligation | Corporate Guarantee for Rs 17.75 Crore loan facility from Axis Bank |
| Impact on Company | The guarantee constitutes a contingent liability |
| Relationship Status | Transaction is conducted on an arm's length basis |
Stock Price Movement
RDB Infrastructure And Power Ltd shares settled at ₹23.39 today, edging higher after gaining 1.21%. The stock traded within an intraday range, hitting a low of ₹22.41 and finding a high of ₹24.00.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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