Synopsis: Oswal Greentech Limited has approved the incorporation of a wholly owned subsidiary in Dubai, UAE, with a proposed investment of AED 40 million. The move is aimed at expanding the company’s international presence through real estate development and property projects in the UAE.
Shares of Oswal Greentech Limited are likely to remain in focus after the company’s board approved the incorporation of a subsidiary in Dubai, United Arab Emirates (UAE) to expand its real estate business internationally.
Oswal Greentech Limited has a total market capitalization of approximately Rs. 606.58 crore. The company’s shares were trading at Rs. 23.62 apiece on the stock exchange, down by 0.76 percent during the session. The stock has declined 3.43 percent over the last five trading sessions, while it has declined 6.38 percent over the last month. The stock touched a 52-week high of Rs. 49.10 and a 52-week low of Rs. 19.76.
According to the company’s regulatory filing, the Board of Directors has approved the incorporation of a foreign subsidiary in Dubai, UAE, subject to obtaining the necessary regulatory and statutory approvals in India and the UAE.
The proposed subsidiary will primarily engage in real estate development and property development, including residential and commercial projects in the UAE. The company stated that the move is intended to expand its international business presence and capitalize on opportunities in one of the world’s fastest-growing real estate markets.
Oswal Greentech plans to make an initial investment of AED 40 million (approximately Rs. 103 crore) in one or more tranches. Of the proposed paid-up capital, the company will subscribe to 38,000 equity shares of AED 1,000 each, aggregating to AED 38 million, representing a 95 percent stake in the proposed subsidiary. The remaining 5 percent stake will be subscribed by Mr. Shael Oswal, who will invest AED 2 million through the subscription of 2,000 equity shares.
The incorporation of the overseas subsidiary will be undertaken under the applicable provisions of the Foreign Exchange Management Act (FEMA), Reserve Bank of India regulations and the relevant laws and regulatory approvals in the UAE.
The strategic expansion comes at a time when Dubai continues to attract significant global investments across residential, commercial and mixed-use real estate. Strong population growth, favourable tax policies, increasing foreign investment and robust demand for premium housing have supported sustained growth in the UAE property market.
For investors, the proposed subsidiary represents Oswal Greentech’s intent to diversify its real estate portfolio beyond India and participate in international property development opportunities. Successful execution of overseas projects could create new revenue streams while strengthening the company’s long-term growth prospects.
Separately, the company also informed the exchanges that M/s Siddharth S. Kothari & Co., Chartered Accountants, has resigned as the Internal Auditor of the company with immediate effect due to personal reasons. The company clarified that the auditor has confirmed there are no material reasons for the resignation other than those stated in the resignation letter.
Incorporated in 1981, Oswal Greentech Limited is engaged in real estate activities and investment of surplus funds, including inter-corporate deposits. The company has interests in real estate development and investment activities across various segments.
The proposed AED 40 million investment marks a significant strategic step in Oswal Greentech’s international expansion plans and could strengthen its presence in the UAE’s growing real estate market.
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