RMC Switchgears has approved the pledge of its 51% stake in associate Intelligent Hydrel Solutions Private Limited (IHSPL) to secure a loan facility from Aseem Infrastructure Finance Limited.

The Board of Directors also approved an investment in RMC NextGen Systems LLP, wherein the company will hold a 51% stake. These approvals were made during the board meeting held on August 27, 2026, which commenced at 9:30 am and concluded at 10:10 am.

Pledge agreement details

The pledge agreement involves multiple parties to secure financial obligations. RMC Switchgears Limited acts as the Pledger, while Intelligent Hydelsolutions Private Limited is the Borrower. Aseem Infrastructure Finance Limited is the Lender, and CTL Trusteeship Limited serves as the Security Trustee.

The purpose of the agreement is to provide security for the due and timely repayment of the borrower's financial obligations under the facility agreement. The size of the agreement covers 51% of the shares held by RMC Switchgears in IHSPL, pledged as collateral for the full and final discharge of secured obligations.

Shareholding structure

RMC Switchgears holds 51% of Intelligent Hydelsolutions Private Limited. The remaining 49% stake is held by Saatvik Cleantech EPC Private Limited. The company holds no shareholding in CTL Trusteeship Limited.

Investment in RMC NextGen Systems

Separately, the board approved the proposed investment in RMC NextGen Systems LLP. Upon completion, RMC Switchgears will hold a 51% stake in the limited liability partnership. No specific financial values or deal consideration amounts were disclosed for this investment.

Regulatory disclosures

The transactions were disclosed under Regulation 30 of the SEBI LODR Regulations, 2015. The pledge transaction does not fall within the ambit of related party transactions as per the Companies Act, 2013 and SEBI LODR regulations. Consequently, the question of arm's length pricing does not arise. The agreement does not involve the issuance of shares or confer special rights such as director appointments or pre-emptive rights.

RMC Switchgears Limited has released the pledge over its shareholding in Intelligent Hydels Solutions Private Limited (IHSPL). The shares were previously pledged in favour of Saatvik Cleantech EPC Private Limited pursuant to a Loan-cum-Share Pledge Agreement approved by the Board of Directors on March 31, 2026.

The pledge stands extinguished with effect from August 20, 2026. RMC Switchgears disclosed this development in an intimation filed with the Bombay Stock Exchange and the National Stock Exchange of India Limited.

Regulatory Disclosure

The disclosure was made in compliance with Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Shivani Bairathi, Compliance Officer and Company Secretary of RMC Switchgears, signed the intimation.

Impact Assessment

The company stated that the release of the pledge does not have any material impact on its financial, operational, or managerial affairs.