RMC Switchgears Pledges 51% Stake in Associate for Loan Security

RMC Switchgears Limited announced that its Board of Directors has approved the execution of a Pledge Agreement with CTL Trusteeship Limited (Security Trustee). This agreement involves pledging the Company's 51% shareholding in its associate company, Intelligent Hydel Solutions Private Limited (IHSPL). The pledge serves as security for a financing facility granted by Aseem Infrastructure Finance Limited to IHSPL. The Board also approved an investment in RMC NextGen Systems LLP, where RMC Switchgears will hold a 51% stake. The pledge agreement includes significant terms such as special rights like director appointment and pre-emptive rights on share issuance. The transaction is not considered a related party transaction.