DEE Development Engineers invests $2.4 Mn in Thai subsidiary

DEE Development Engineers Limited announced today a $2.4 million investment in its wholly owned subsidiary, DEE Piping Systems (Thailand) Co. Ltd. The Indian engineering firm will use the funds to help the Thai unit repay debt, according to the announcement by the company.

The shares of DEE Development Engineers Limited closed today at ₹259.10 up by ₹6.32 or 2.50 per cent on the NSE.

The investment will be made through the acquisition of 161,61,616 equity shares, representing 24.51 per cent of the existing paid-up equity share capital of the Thai subsidiary. Following the transaction, DEE Development Engineers’ total stake will comprise 8,20,92,974 equity shares of THB 5 each, maintaining its 100% ownership.

DEE Piping Systems (Thailand), incorporated in October 2014, specializes in the fabrication of pipe spools and components for industrial piping systems. Despite growing its turnover to 8,239.01 lakh rupees (approximately $9.5 million) in fiscal year 2023-2024, the subsidiary posted a loss of 433.48 lakh rupees with a negative net worth of 1,181.04 lakh rupees as of March 31, 2024.

The Thai unit has shown consistent revenue growth over recent years, with turnover increasing from 4,098.39 lakh rupees in 2021-2022 to 6,410.78 lakh rupees in 2022-2023, before reaching its current level.