RDB Infrastructure & Power approves Rs 17.75 cr guarantee and 1.56‑acre land purchase

What RDB Infrastructure & Power Ltd announced

On 16 June 2026, the Board of Directors of RDB Infrastructure & Power Ltd (formerly RDB Realty & Infrastructure Ltd) met and approved two significant actions:

1. Issuance of a corporate guarantee in favour of RDB Real Estate Constructions Ltd for a loan facility of Rs 17.75 crore sanctioned by Axis Bank.
2. Acquisition of 1.56 acres of land located in Jharsuguda, Odisha.

The board meeting commenced at 03:30 PM and concluded at 03:57 PM. The company disclosed the actions in a Regulation 30 filing with the BSE.

Corporate guarantee details

The guarantee is intended to secure a credit facility of Rs 17.75 crore extended by Axis Bank to RDB Real Estate Constructions Ltd, a group company of RDB Infrastructure & Power. The filing states that the promoters and promoter group are common to both entities, with shared shareholdings and three individuals—Mr Sharad Bachhawat, Mr Abhay Doshi and Mr Ashok Kumar Jain—serving as independent directors on both boards.

"The Corporate Guarantee has been provided in the ordinary course of business and on an arm's length basis."

Under SEBI Listing Regulations, the guarantee is classified as a contingent liability for the listed entity. No further financial impact, such as potential cash outflow, is quantified in the filing.

Land acquisition details

The second resolution approved the purchase of land in Jharsuguda, Odisha, covering an aggregate area of 1.56 acres. The filing does not disclose the purchase price, the intended use of the land, or any financing arrangements related to the acquisition.

Regulatory disclosure

The announcement was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with reference to Schedule III and SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11 Nov 2024. The complete disclosure, labelled Annexure 1, was attached to the filing and also uploaded on the company’s website (www.rbdindia.com).

Key facts at a glance

Why this matters for investors

• Contingent liability exposure: The Rs 17.75 crore guarantee creates a potential off‑balance‑sheet obligation. If the borrower defaults, the listed company may be called upon to honour the guarantee.
• Group‑related transaction: Both the guarantor and the beneficiary share common promoters, which may raise governance considerations. The board asserts the transaction is arm‑length, but investors will note the related‑party nature.
• Asset addition: The acquisition of 1.56 acres adds a tangible asset in Odisha to the company’s balance sheet. While the cost is undisclosed, the land could support future infrastructure or power projects, aligning with the company’s core business.
• Regulatory compliance: The filing satisfies SEBI’s disclosure requirements, ensuring transparency for shareholders and market participants.

Conclusion

RDB Infrastructure & Power Ltd has formally recorded a Rs 17.75 crore corporate guarantee for a loan to its group affiliate and has purchased 1.56 acres of land in Jharsuguda, Odisha. The guarantee is a contingent liability, and the land acquisition expands the company’s asset base. Both actions were disclosed in compliance with SEBI Regulation 30, and no further approvals appear to be pending.