RattanIndia Enterprises Increases Investment in Neorise Technologies

RattanIndia Enterprises Limited has announced that its Board of Directors has approved an increase in the company’s investment in its wholly-owned UAE-based subsidiary, NEORISE TECHNOLOGIES FZCO (Neorise).

Investment Details

The investment will rise from AED 1 million to AED 5 million, through one or more tranches. This will include the conversion of a loan of AED 2 million previously granted by RattanIndia Enterprises to Neorise into equity shares. The decision is subject to compliance with applicable laws and regulations.

Post-acquisition of the shares, Neorise will remain a wholly-owned subsidiary of RattanIndia Enterprises. Neorise was incorporated in Dubai on December 27, 2021, and focuses primarily on management consultancy, project management services, and investment in commercial enterprises. The proposed investment is made to meet Neorise’s fund requirements at no additional cost, as the company is in the process of launching its business operations, which include general trading and e-commerce activities.

As Neorise is a wholly-owned subsidiary of RattanIndia Enterprises, this transaction qualifies as a related-party transaction. However, the necessary approval has been obtained from the Audit Committee of RattanIndia Enterprises, ensuring that the investment is made at an arm’s length basis. The objective of this investment is to provide the necessary funding for Neorise’s operations, helping the company establish itself in its business activities.

The acquisition process is expected to be completed in approximately 2-3 months, subject to obtaining any necessary statutory approvals. The consideration for the investment will be all cash, with the loan being converted into shares of Neorise, which will further strengthen the subsidiary’s financial position.

On December 23, 2024, RattanIndia Enterprises share price opened at ₹67.30, touching the day’s low at ₹65.46, as of 9:58 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.