What's covered under the Article

Renaissance Global Limited (RGL) has announced the approval of an additional ₹29 crore investment in RD2C Ventures Inc (RD2C), a wholly-owned step-down subsidiary of the company. This investment has been sanctioned by the Investment Committee of the company during its meeting held on March 20, 2025, as per the powers delegated by the Board of Directors. The investment will be made through subscription to the shares of RD2C Ventures, and the transaction is expected to be completed on or before March 31, 2025.

Details of RD2C Ventures Inc

RD2C Ventures Inc (RD2C) was incorporated on November 19, 2021, and is based in Long Island City, New York, USA. It is a wholly-owned subsidiary of Verigold Jewellery FZCO, Dubai, which is itself a wholly-owned subsidiary of Renaissance Global Limited. RD2C operates primarily in the jewellery industry, focusing on the Direct-to-Consumer (D2C) sale of gems and diamond-studded jewellery.

The company's standalone revenue as of December 31, 2024, was $21,393, while its financial performance for the previous three financial years was nil revenue.

Nature of Transaction and Related Party Status

Since RD2C is a related party of Renaissance Global Limited, this transaction qualifies as a Related Party Transaction (RPT). However, the company's promoter and promoter group have no direct interest in the proposed investment, which ensures that the transaction is carried out at arm's length pricing.

Purpose and Utilization of Funds

The ₹29 crore investment in RD2C Ventures will be used primarily for:

• Making further investments to strengthen the company’s position in the international jewellery market.
• Repaying outstanding debt and clearing other financial obligations.

This infusion of capital is expected to enhance RD2C's capacity to expand its operations, improve its supply chain efficiency, and enhance its brand presence in the competitive US jewellery market.

Regulatory Compliance and Approvals

The proposed investment falls under the automatic route of FEMA regulations. All necessary regulatory filings, including those with the Authorised Dealer (AD) Bank and the Reserve Bank of India (RBI), will be completed post the transaction's execution. Since this is an overseas investment by an Indian entity, it requires compliance with FEMA provisions and RBI guidelines governing outward investments.

Financial Implications and Shareholding Structure

Upon completion of this investment, Renaissance Global Limited will continue to maintain 100% control of RD2C Ventures Inc. The shareholding structure will be as follows:

• 50.98% direct holding by Renaissance Global Limited.
• 49.02% indirect holding through Verigold Jewellery FZCO.

Impact on Business and Future Prospects

This strategic investment is expected to yield positive long-term results for Renaissance Global Limited by:

• Strengthening RD2C’s position in the Direct-to-Consumer jewellery segment.
• Leveraging growing consumer interest in online jewellery purchases.
• Enabling RD2C to effectively compete with established players in the US market through improved marketing, operational efficiency, and innovation.

Renaissance Global Limited has been focusing on enhancing its global footprint by investing in key subsidiaries to improve operational efficiency and expand its product offerings. This additional investment in RD2C Ventures Inc aligns with the company’s broader strategy of expanding its presence in the global jewellery market and leveraging emerging opportunities in the D2C space.

Timeline and Completion

The transaction is expected to be completed on or before March 31, 2025. Necessary compliance processes, including filings with regulatory authorities, will be undertaken post-completion to ensure adherence to all applicable legal requirements.

This investment further reaffirms Renaissance Global Limited’s commitment to strengthening its subsidiaries, driving growth, and delivering enhanced value to its shareholders.

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