RDB Real Estate Constructions Limited has announced the approval of a corporate guarantee for its wholly-owned subsidiary, Gupta Infrastructur (India) Private Limited, following a meeting of the Board of Directors held on February 11, 2025. The company has granted a guarantee to secure a loan facility of Rs 170 crore (Rupees One hundred seventy crores) from Axis Bank Limited, Kolkata Branch. This guarantee ensures that the loan facility availed by Gupta Infrastructur will be secured by the corporate entity, further strengthening the financial position of the subsidiary.

Key Details of the Corporate Guarantee

• Name of the Party: Gupta Infrastructur (India) Private Limited, a wholly-owned subsidiary of RDB Real Estate Constructions Limited.
• Interest in the Transaction: There is no interest from the promoters or promoter group of RDB Real Estate in this transaction, and it is conducted at arm’s length as per the guidelines.
• Guarantee Amount: Rs 170,00,00,000 (Rupees One hundred seventy crores) for securing a loan facility from Axis Bank Limited.
• Terms & Conditions: The terms of the guarantee are set out in the sanction letter provided by the bank, including all significant conditions and the structure of the loan facility.

Impact on the Company

The corporate guarantee provided by RDB Real Estate Constructions Limited introduces a contingent liability for the company, which will be triggered if the subsidiary defaults on the loan. The guarantee aligns with the company’s strategic support for its subsidiary’s growth and operations, ensuring financial flexibility and risk management within the group.

This transaction is compliant with the SEBI Listing Regulations and the Companies Act, 2013, as well as all other relevant legal provisions. The company continues to maintain transparency in its corporate actions, ensuring that stakeholders are fully informed about significant developments.

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