Transrail Lighting Limited has invested AED 12.5 million (approximately ₹31.53 crore) in the equity share capital of its wholly owned subsidiary, Transrail Trading LLC, based in the United Arab Emirates, the company said in a regulatory filing.
The investment has been made through subscription to 12,500 equity shares of AED 1,000 each, and the subsidiary will continue to remain fully owned by Transrail Lighting after the transaction. The investment was made in cash and falls under the automatic route as per the Foreign Exchange Management Act (FEMA), with no separate regulatory approvals required.
Transrail Trading LLC, incorporated on June 21, 2024, in Dubai, operates in the engineering, procurement and construction (EPC) sector and is engaged in electrical and power infrastructure contracting, along with trading of electrical equipment and construction materials used in transmission lines, substations, and solar projects. The subsidiary is currently in the growth phase and has not yet generated significant revenue.
According to the company, the fresh capital infusion will be utilised to support project execution in Africa and the Middle East. The funds will be used for procurement of materials and services, investment in plant and machinery, meeting working capital requirements, and general corporate purposes, including potential acquisitions and joint ventures.
The transaction is classified as a related-party transaction since the entity is a wholly owned subsidiary; however, the company stated that the deal has been carried out on an arm’s-length basis and no promoter or group entity has any direct interest in the subsidiary apart from Transrail Lighting.
Following the investment and subsequent share allotment, the total share capital held by Transrail Lighting in Transrail Trading LLC will increase to AED 13 million, while the company continues to retain 100% ownership.
