Pritika Auto Industries Limited has informed the Exchange about investment by the Subsidiary Company
PRITIKAUTO · price
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Pritika Auto Industries' subsidiary, Pritika Engineering Components Ltd., has approved an investment of up to USD 1,00,000 (about ₹84 lakhs) to acquire 10,00,000 shares of $0.10 each in Omnia Engineering Inc., a newly incorporated company in Delaware, USA. After this investment, Omnia will become a wholly-owned subsidiary of Pritika Engineering Components Ltd., and a step-down subsidiary of Pritika Auto Industries. The purpose is to leverage new growth opportunities in US markets for engineering components manufacturing/trading. Notably, Omnia has not yet started operations, and the company's promoter and Managing Director, Mr. Harpreet Singh Nibber, serves as President and CFO of Omnia, indicating a related-party connection. The investment will be made in cash, in one or more tranches.
The investment size is small relative to typical capex, so immediate financial impact is limited. However, it signals Pritika Auto's intent to expand into the US market through its subsidiary. Shareholders should note the related-party involvement of the promoter in the new entity, though the company states the transaction is at arm's length.