Target Entity:

JK Digital & Advance Systems Private Limited (CIN: U26204DL2023PTC417784)

Type of Deal:

Acquisition of additional preference shares in a wholly owned subsidiary, pursuant to a Rights Issue. This is an internal investment to increase capital in the subsidiary.

Stake/Capacity:

Acquired 2,00,000 preference shares of face value ₹100 each. JKE already held 100% paid-up share capital of JK Digital, and after this acquisition, the ownership remains unchanged at 100%. JK Digital continues to be a wholly owned subsidiary.

Deal Value:

₹2,00,00,000 (Rupees Two Crore Only)

Funding Source:

Cash consideration paid from the net proceeds received under the Rights Issue (Letter of Offer dated August 17, 2024). The funding is from internal accruals generated through the rights issue.

Financial Impact:

Not explicitly disclosed in terms of revenue contribution, EBITDA impact, or accretion/dilution. The acquisition is solely for utilizing the rights issue proceeds as per the objects approved by shareholders.

Timeline:

The acquisition was completed on October 5, 2026. No future timeline provided as it is already executed.

Strategic Rationale:

To utilize the net proceeds from the Rights Issue. JK Digital will further use this amount as per the objects outlined in the Letter of Offer, which was amended and approved by shareholders at the 79th Annual General Meeting. The rationale is aligned with capital allocation from the fundraising.

Approval Status:

No governmental or regulatory approvals required, as stated in the disclosure. The acquisition is likely board-approved or internal, given it involves a wholly owned subsidiary.

Reference Regulation:

SEBI Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Additional Details from Annexure-A:

  • JK Digital is a private company incorporated on July 27, 2023, with registered office at 4th Floor, JK Building, A-2, Local Shopping Centre, Masjid Moth, New Delhi 110048.
  • Main objects include 3D Printing works, advanced systems, research and development services, and other allied services.
  • Turnover for FY 2025-26: ₹47.49 lakhs.
  • Industry: Digital & IT Services.
  • Country of presence: India.
  • The acquisition does not constitute a related party transaction under the Companies Act, 2013, and SEBI Listing Regulations, as it is with a wholly owned subsidiary and considered at arm's length.