Investment in the Equity Share Capital of PML Realtors Pvt. Ltd, Wholly Owned Subsidiary of the Company
PML · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
The board of Paul Merchants Ltd has approved an additional investment of up to Rs. 125 crores in its wholly owned subsidiary PML Realtors Pvt. Ltd, which operates in the real estate sector (buying, selling, and allied property activities across India). The investment will be made in one or more tranches over a period of time, at fair value certified by a registered valuer. Since PML Realtors is already a 100% wholly owned subsidiary, this infusion will not change Paul Merchants' ownership stake but will support the subsidiary's growth and expansion. PML Realtors had a paid-up equity capital of Rs. 25 crores and reported a turnover of Rs. 5.6 crores in FY25, compared to nil in FY24 and Rs. 0.85 crores in FY23. Promoters Sat Paul Bansal and Rajneesh Bansal serve as directors on both companies, making it a related party transaction, though exempt under SEBI LODR for wholly owned subsidiaries.
This is a significant capital deployment by Paul Merchants into its real estate arm, signaling the company's intent to scale up property-related activities. Shareholders should monitor how effectively this Rs. 125 crore is deployed and the returns generated by PML Realtors, as the subsidiary's turnover has historically been modest. The investment may dilute returns in the near term but could support long-term diversification beyond the parent company's core NBFC business.