Lakshmi Machine Works Expands Global Presence with New UAE Subsidiary

On July 11, 2024, Lakshmi Machine Works Ltd announced via a stock exchange filing that it had incorporated a wholly owned subsidiary company, LMW Holding Limited, on July 10, 2024.

Incorporating this wholly-owned subsidiary does not fall under related party transactions. However, as a wholly owned subsidiary, it is considered a related party of the parent company. The promoter/promoter group/group companies are not interested in the newly incorporated entity.

Objects and Effects of Acquisition

LMW Holding Limited aims to function as a holding company and managing office, focusing on investing in industrial enterprises and their management. Its incorporation as a wholly owned subsidiary in Dubai International Financial Centre, UAE, expands Lakshmi Machine Works Limited’s global footprint. This strategic move enables LMW to access new markets, forge alliances and partnerships, and acquire talent, enhancing its international presence and growth opportunities.

Acquisition Details

• Nature of consideration: The consideration for the acquisition is in cash.
• Cost of Acquisition: A total of AED 9,00,00,000 will be paid for the subscription of 90,00,000 shares of AED 10 each in LMW Holding Limited.
• Percentage of Shareholding/Control Acquired: Lakshmi Machine Works Limited holds 100% of the capital in LMW Holding Limited.

About LMW Holding Limited

LMW Holding Limited was established on July 10, 2024, in Dubai International Financial Centre, Dubai, United Arab Emirates. It serves as a strategic initiative by Lakshmi Machine Works Limited to expand globally and access new markets through alliances, partnerships, and talent acquisition. LMW Holding Limited is a holding company that manages investments in industrial enterprises.

About Lakshmi Machine Works Ltd

Lakshmi Machine Works Ltd is a leading textile machinery manufacturer in India. It produces and sells textile spinning machinery, CNC machine tools, heavy castings, and components for various sectors. The company operates 6 manufacturing units, 2 each for the textile machinery and foundry divisions and 1 each for the foundry and technology divisions.

On July 12, 2024, the share price of Lakshmi Machine Works Ltd opened at ₹16,215.00, touching the day’s high of ₹16,244.90 as of 10:57 AM on the NSE.

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