Dhoot Transmission invests €2,50,000 in German subsidiary

Dhoot Transmission (NSE: DHOOTTRANS) subscribed to 2,50,000 equity shares of €1 each in its wholly owned German subsidiary, Dhoot Transmission GmbH, on 30 Oct 2026 for €2,50,000 in cash, equivalent to ₹2.82 crore, it said in a filing on 31 Oct 2026.

What the subsidiary is set up to do

Dhoot Transmission GmbH was incorporated on 12 Dec 2024 as a private company limited by shares under the laws of the Federal Republic of Germany. The filing says it is authorised to engage in engineering services, customer acquisition, and conducting off project discussions for automotive and related industries, in terms of its charter documents.

The company says the additional capital will be used to meet working capital needs, business growth and expansion. The filing does not give the amount to be used for each purpose.

Size of the subsidiary and the step

The subsidiary reported nil turnover for the financial year ended 31 Mar 2026. Its net worth on that date was €45,718.57, equivalent to ₹51,57,969.07, so the new cash of ₹2.82 crore is larger than its net worth at that date.

Dhoot Transmission reported total income of ₹1,446.42 crore and net profit of ₹132.66 crore for Q1 FY27 on a consolidated basis. Against that, the capital put into the German unit is small. The company's shareholding stays at 100% before and after the subscription, and the filing says the transaction is at arm's length and is a related party transaction because the subsidiary is wholly owned.

The filing about that allotment is separate from this subscription.

What the subscription means for Dhoot Transmission's shareholders

The company keeps full ownership of its German subsidiary, and the cash put in is a small sum against the company's size. Governmental approvals and the completion period are stated as not applicable.

At a glance