Attached herewith is the announcement under Regulation 30 - Acquisition of "To be incorporated Company"
DIVGIITTS · price
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Divgi TorqTransfer Systems Limited's Board of Directors has approved the incorporation of a new wholly-owned subsidiary in the United States of America. The company will invest up to Rs 3.00 crores in this Foreign WOS through subscription to equity shares and/or other classes of shares. The WOS will be 100% owned by the company (directly or indirectly) and will focus on advance business development, sales, marketing, promotion, and distribution in the automotive industry. The funds will be used for setup costs, initial operating expenses, procurement, working capital, and strengthening the capital base. The incorporation will be subject to FEMA regulations, RBI guidelines, and applicable US regulatory approvals.
This announcement indicates the company's strategic intent to expand into the US market for business development and distribution. The investment amount of Rs 3 crores is relatively small, representing about 1.3% of the company's likely market cap, suggesting a measured international expansion rather than a major capital deployment. Shareholders may view this positively as a growth initiative.