Diamond Power Gears Up for Growth with New Subsidiary Focused on Specialty Alloys

Diamond Power Infrastructure Limited, a leading player in the Indian infrastructure sector, announced a strategic expansion move with the incorporation of a wholly-owned subsidiary, DICABS Nextgen Special Alloys Private Limited. This move signifies Diamond Power’s commitment to diversification and growth within the metals and alloys industry.

A New Entity for Specialised Manufacturing

DICABS Nextgen Special Alloys Private Limited will operate as a wholly-owned subsidiary (WOS) of Diamond Power Infrastructure. Following incorporation, it will become a related party of the company. This subsidiary establishes a dedicated platform for Diamond Power to venture into the specialised manufacturing of high-demand products, including:

• Wire-rod and wire-drawing
• Strip drawing and sheet rolling
• Processing and rewinding services
• Cables and conductors
• Machinery, equipment, components, tools, and accessories for the aforementioned processes

Strategic Objectives and Investment Timeline

Diamond Power’s investment in DICABS Nextgen Special Alloys is a strategic move to capitalise on new market opportunities within the metals and alloys sector. The subsidiary will allow them to expand their product portfolio and potentially tap into new customer segments. The completion of the transaction is expected to occur before the end of Q2 FY2025.

Diamond Power will make a two-part investment in the subsidiary:

• Initial Investment: An initial investment of ₹3,000 will be made to acquire 300 shares with a face value of ₹10 each at par.
• Further Investment: An additional investment of ₹4,90,00,000 will be made to capitalise the subsidiary further and provide it with the necessary resources to commence operations.

Diamond Power’s expansion through DICABS Nextgen Special Alloys signifies a calculated move towards diversification and long-term growth. This strategic investment positions them to capitalise on emerging trends within the metals and alloys industry, potentially opening doors to new markets and revenue streams.

On May 28, 2024, the shares of Diamond Power opened at ₹926.80 and touched the day low of ₹926.80 at 11:15 AM

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.