Intimation regarding allotment of equity shares in DM Gates and Penstocks Private Limited
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Awaiting price reaction for this filing.
DMR Engineering informed BSE that it has been allotted 1,80,000 equity shares in DM Gates and Penstocks Private Limited through a private placement at face value of Rs. 10 per share, involving a total cash consideration of Rs. 18 lakh. Post-allotment, DMR's shareholding in DM Gates and Penstocks has come down from 60% to 45%, meaning the entity is no longer a subsidiary of DMR. DM Gates and Penstocks was incorporated in September 2024 by DMR's promoter Subhash Chander Mittal (CMD) and CFO Bal Mukund Kumar, making this a related party transaction conducted at arm's length. The target company works in engineering services for gates, valves, penstocks and hydromechanical systems — a line that DMR notes is not complementary to its current business, with the investment aimed at opening new growth avenues.
Shareholders should note that DMR is diluting from majority control (60%) to a minority stake (45%) in a promoter-related entity, raising governance and related-party concerns even though the deal is at arm's length. The investment is small (Rs. 18 lakh) and the target is a newly incorporated company with no revenue, so near-term financial impact is limited but the strategic intent signals diversification.