In a significant move, B.C. Power Controls Ltd has announced the incorporation of its wholly owned subsidiary Proxima Industries Private Limited on November 22, 2024. The new subsidiary, which is registered under the CIN U43900DL2024PTC439073, has an authorized capital of Rs. 10,00,000, with an equivalent paid-up capital of Rs. 10,00,000. However, it is important to note that Proxima Industries has yet to commence its business operations and currently has a nil turnover.

The company has shared that the acquisition of Proxima Industries falls under a related party transaction, as the subsidiary is entirely owned by B.C. Power Controls Ltd. Despite this, the company has affirmed that the transaction has been carried out at “arm’s length”.

Objectives and Impact of the Acquisition

The main objectives for acquiring Proxima Industries are related to the company's expanding operations in the construction and trading sectors. Specifically, the subsidiary aims to operate in construction and the trading of metals and other goods. Although Proxima Industries has yet to initiate any business activities, this acquisition could lead to a significant expansion of B.C. Power Controls' presence in these sectors.

Regulatory Aspects

Regarding regulatory approvals, no governmental or regulatory clearances are required for this acquisition, as per the information provided. The consideration for the acquisition is 100% subscription to the share capital of Proxima Industries, which was done entirely in cash. The cost of acquiring the shares stands at Rs. 10 lakh, corresponding to the paid-up capital of 1 lakh equity shares at a nominal value of Rs. 10 per share.

Future Plans

While the wholly owned subsidiary has been incorporated, Proxima Industries has not yet started its business operations. However, the future potential in construction and metal trading could align well with the parent company’s long-term business strategies. With this acquisition, B.C. Power Controls Ltd is expected to further strengthen its footprint in the market.

Proxima Industries Pvt Ltd, as a new subsidiary, has an authorized capital of Rs. 10 lakh but remains in its nascent stage, with no operational activities or turnover recorded at this time. As of now, it holds 100% capital ownership with B.C. Power Controls Ltd, and the move is expected to contribute positively to the company’s portfolio in the near future.

This acquisition is part of B.C. Power Controls Ltd’s continuous expansion strategy, and further updates on its operations will likely be provided once Proxima Industries begins business operations.

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