Oswal Greentech Ltd has approved the incorporation of a wholly owned subsidiary in Dubai, UAE, as the company looks to expand its real estate business overseas.
According to a regulatory filing, the proposal is subject to the required statutory and regulatory approvals in both India and the UAE.
Shares of Oswal Greentech were trading at ₹23.62, down 0.76% during the session. The company has a market capitalisation of ₹606.58 crore.
The stock has:
- Fallen 3.43% over the last five trading sessions.
- Declined 6.38% over the past month.
- Touched a 52-week high of ₹49.10.
- Hit a 52-week low of ₹19.76.
Focus on UAE Real Estate
The proposed subsidiary will undertake:
- Real estate development.
- Property development activities.
- Residential projects.
- Commercial projects.
The company said the move is aimed at strengthening its international presence and tapping opportunities in the UAE property market.
Investment of AED 40 Million
Oswal Greentech plans to invest AED 40 million (around ₹103 crore) in one or more tranches.
Under the proposed shareholding structure:
| Shareholder | Stake | Investment |
|---|---|---|
| Oswal Greentech Ltd | 95% | AED 38 million |
| Shael Oswal | 5% | AED 2 million |
Oswal Greentech will subscribe to:
- 38,000 equity shares.
- Face value of AED 1,000 per share.
- Total investment of AED 38 million.
Mr. Shael Oswal will subscribe to:
- 2,000 equity shares.
- Investment of AED 2 million.
Subject to Regulatory Approvals
The overseas investment will be carried out in accordance with:
- The Foreign Exchange Management Act (FEMA).
- Reserve Bank of India regulations.
- Applicable laws and approvals in the UAE.
Internal Auditor Resigns
In a separate disclosure, the company said M/s Siddharth S. Kothari & Co., Chartered Accountants, has resigned as the internal auditor with immediate effect.
According to the filing, the resignation was due to personal reasons.
The company added that the auditor had confirmed there were no material reasons behind the resignation other than those mentioned in the resignation letter.
About the Company
Founded in 1981, Oswal Greentech is engaged in:
- Real estate activities.
- Investment of surplus funds.
- Inter-corporate deposits.
The company has interests across various segments of the real estate and investment businesses.
TL;DR
Oswal Greentech has approved the incorporation of a Dubai-based subsidiary with a proposed investment of AED 40 million. The new entity will focus on residential and commercial real estate projects in the UAE, with the company holding a 95% stake.
AI Summary
- Oswal Greentech plans to set up a subsidiary in Dubai.
- The company will invest AED 40 million in the venture.
- Oswal Greentech will own 95%, while Shael Oswal will hold 5%.
- The subsidiary will undertake residential and commercial projects.
- The company also disclosed the resignation of its internal auditor.
