Vinati Organics Subscribes to Equity Shares in Wholly Owned Subsidiary, Veeral Organics
Vinati Organics Limited announced a significant investment, subscribing to an additional issuance of equity shares in its wholly owned subsidiary, Veeral Organics Private Limited. The transaction involves a rights issue amounting to ₹ 19,88,00,000.The Company subscribed to 1,98,80,000 fully paidup equity shares of Veeral Organics Private Limited. Each share has a face value of ₹ 10, bringing the total value of the subscription to ₹ 19,88,00,000 (Rupees Nineteen Crore Eighty Eight Lakh only). The issued shares of Veeral Organics Private Limited rank pari-passu to the existing equity shares.
The consideration for this investment is structured as cash consideration. The transaction was noted to be related party in nature, but given that Veeral Organics Private Limited is already a wholly owned subsidiary, the provision of Related Party Transaction under SEBI (LODR) Regulations, 2015, is not applicable for further acquisition of equity shares.
Subsidiary Overview and Business Context
Veeral Organics Private Limited (VOPL) is a wholly owned subsidiary of Vinati Organics Limited, having been incorporated under the Indian Companies Act, 2013, on October 5, 2020. The primary business object of VOPL is the manufacturing of Organics Fine Specialty Chemicals, an activity aligned with the main line of business of Vinati Organics Limited.The investment is expected to maintain the existing corporate structure, as the acquisition will not change the percentage of shareholding, and VOPL will remain a 100% wholly-owned subsidiary of the Company.
The turnover history for Veeral Organics Private Limited over the last three financial years is detailed below:
| Financial Year | Turnover (₹ in Crores) |
|---|---|
| FY 2025-26 | 21.94 |
| FY 2024-25 | 10.55 |
| FY 2023-24 | 0.09 |
The transaction details confirm that the investment constitutes an acquisition of shares by Vinati Organics Limited, with the aggregate cost of acquisition being ₹ 19,88,00,000. The nature of the relationship is classified as a related party transaction and is reported to be conducted at arm's length.
VINATIORGA Stock Price Movement
Shares of Vinati Organics Limited are gaining momentum, climbing 3.18% to ₹1364.9 as of 3:05 PM today. The equity sees high liquidity today, trading on a robust volume of 71,435 shares.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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