New Delhi: Dhampur Bio Organics Ltd has approved the incorporation of a wholly owned subsidiary in the United Arab Emirates (UAE), the company informed stock exchanges on February 26.
The decision was taken at a meeting of the Board of Directors held on Thursday, according to the regulatory filing.
The proposed subsidiary will be engaged in trading, distribution and packaging of sugar and other fast-moving consumer goods (FMCG), along with dealing in sugar futures and allied products. The name of the subsidiary will be announced after receiving approval from the relevant authorities in the UAE.
Dhampur Bio Organics will hold 100% stake in the new entity. The company plans to make an initial investment of AED 73,45,000 (approximately US$ 2 million) in the subsidiary. The subscription to the equity shares will be made in cash at face value.
The incorporation will be carried out in compliance with applicable laws in the UAE, along with the Foreign Exchange Management regulations of the Reserve Bank of India and provisions of the Companies Act, 2013.
The company said further updates will be provided once the subsidiary is formally incorporated.
