PDS Limited plans to invest further in its wholly-owned subsidiary, Multinational Textile Group Limited, based in Mauritius. The investment, totalling approximately ₹84 crore (~USD 9,999,990), will be made by subscribing to ordinary shares in one or more tranches, subject to fulfilling necessary terms, conditions, and compliance with applicable laws and regulations.
As MTGL is a wholly-owned subsidiary of the Company, this investment qualifies as a related party transaction. Aside from the shares held by the Company in MTGL, neither the promoter group nor any group companies have any interest in the subsidiary. The transaction will be conducted on an arm’s length basis. No governmental or regulatory approvals are required for this transaction. The acquisition is expected to be completed by or before October 31, 2024, subject to mutual agreement between the parties.
The investment is aligned with the Company’s “Use of Proceeds” plan outlined in the Qualified Institutional Placement (QIP) document dated August 27, 2024. The funds raised will be directed towards repaying debt, covering issue-related expenses, pursuing strategic acquisitions and growth opportunities, and general corporate purposes.
The investment will be made through a cash consideration. The Company has agreed to subscribe to 1,923,075 ordinary shares of Multinational Textile Group Limited (MTGL) at a price of USD 5.20 per share, amounting to approximately ₹84 crore (USD 9,999,990). This investment will be completed in one or more tranches, subject to the fulfilment of necessary terms and compliance with applicable laws. The Company’s shareholding in MTGL will remain unchanged at 100%, and MTGL will continue to be a wholly-owned material subsidiary.
The Company already holds a 100% stake in MTGL. The investment will not alter its shareholding, ensuring full ownership of the subsidiary is maintained.
Multinational Textile Group Limited (MTGL) is incorporated in Mauritius, and its registered office is located at Rogers House, Port Louis. Established on March 28, 2006, MTGL operates in the fields of marketing services, management services, corporate services, and consultancy. The investment is in Multinational Textile Group Limited (MTGL), a wholly-owned subsidiary of the Company. MTGL has an issued share capital of ₹183.05 crore (USD 21.95 million).
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.
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