KUNDANMM: Kundan Minerals and Metals Limited has informed the Exchange about General Updates.
Awaiting price reaction for this filing.
Kundan Minerals and Metals has informed the stock exchanges that its Board approved an investment in its wholly owned subsidiary, Kundan Gold Mines Private Limited. The subsidiary is in the business of prospecting, exploration and mining of minerals and metals including gold and graphite, and has reported nil turnover for the last three financial years (2023, 2024, 2025). The company will subscribe to 30 lakh (3 million) equity shares at par value, and post-subscription the subsidiary will continue to remain wholly owned. The consideration will be discharged through shares issued by the subsidiary to the parent company, and the transaction is being done at arm's length. The deal is expected to be completed within one month and aims to strengthen the subsidiary's capital base to support its expansion plans.
This is a routine capital infusion into a wholly owned subsidiary and is unlikely to have any material impact on the listed company's stock price or shareholder value in the short term. Shareholders may view it as the parent backing its mining expansion plans, though the subsidiary has no operating history yet, so execution risk remains.