COMPANY HAS RECEIVED THE ALLOTMENT OF SHARES UNDER RIGHT ISSUE OF ITS SUBSIDIARY COMPANY.
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Stratmont Industries Ltd has received allotment of shares under the rights issue of its subsidiary, Stratmont Coal and Commodity Private Limited (SCC). The company subscribed to 19,90,000 equity shares of face value Rs. 10 each, amounting to roughly Rs. 1.99 crore, paid in cash. SCC is engaged in coal and commodity trading, and the investment was made to increase Stratmont's shareholding and support business expansion. Notably, SCC reported NIL turnover for the last three financial years (FY22-23, FY23-24, FY24-25). The transaction is a related party deal but conducted at arm's length, with no promoter group interest involved.
For shareholders, this signals the parent company is injecting capital into a loss-making subsidiary (zero revenue over 3 years) with plans to expand its commodity trading business. The financial commitment is modest, but the lack of any revenue track record in SCC may raise concerns about the viability of this expansion strategy.