Divgi TorqTransfer Systems Approves Wholly-Owned Subsidiary in USA; Plans Rs 3.00 Crore Investment
Divgi TorqTransfer Systems Limited announced the board approval for the incorporation of a wholly-owned subsidiary in the United States of America. The company also stated plans to invest up to an aggregate amount not exceeding Rs 3.00 crores into the newly formed Foreign WOS.The Board of Directors approved the incorporation of the subsidiary, which will be directly or indirectly owned by Divgi TorqTransfer Systems Limited. The proposed entity is situated in the United States of America and is anticipated to operate within the Automotive Industry sector.
The Committee of the Board of Directors approved the investment into the Foreign WOS through the subscription of equity shares and/or any other class of shares. The funds mobilized from this investment will be utilized to strengthen the subsidiary’s long-term capital base and support its working capital expenditure.
The Foreign WOS is set to undertake the business of Advance Business Development, Sales, marketing, promotion, and distribution.
Key details regarding the proposed subsidiary and investment structure are outlined below:
| Detail | Description | Value/Information |
|---|---|---|
| Entity Name | Proposed Wholly Owned Subsidiary | To be approved by authorities in the United States of America |
| Country of Incorporation | United States of America | N/A |
| Nature of Interest | Wholly-owned Subsidiary (WoS) | Related Party to the Company |
| Industry | Automotive Industry | N/A |
| Business Line | Advance Business Development, Sales, Marketing, Promotion, and Distribution | N/A |
| Proposed Initial Investment | Cost of Subscription | Not exceeding Rs 3.00 crores |
| Subscription Type | Equity shares and/or any other class of shares | 100% subscription to the share capital |
The investment in the Foreign WOS is structured to meet set-up, initial operating, procurement, and other costs, with the company subscribing to equity shares as per applicable regulatory provisions.
DIVGIITTS Stock Price Movement
On Monday, Divgi Torqtransfer Systems Limited shares gained ground, finishing at ₹743.2, marking a solid 5.28% rally for the stock. The equity found significant buying support, trading over 48,117 shares while testing a high of ₹748.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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