Indus Towers Limited has announced the incorporation of a wholly owned subsidiary in GIFT City, Gujarat, which will function as an investment holding company for its overseas subsidiaries. In a regulatory filing, the company said the subsidiary will also undertake treasury-related functions such as cash pooling and other activities permitted under the IFSC framework at GIFT City. These operations will support the parent and group entities, leveraging tax benefits and easier access to global financial services available in the hub.
Indus Towers said that it plans an initial cash investment of up to Rs 200 million, to be made in one or more tranches, for 100 per cent ownership of the entity. The company added that there will be no share swap or other forms of consideration involved.
As the proposed entity is new, the transaction qualifies as a related party transaction on an arm’s length basis, with the company stating that promoters and group companies have no additional interest in it.
The incorporation is subject to approvals from the Ministry of Corporate Affairs (MCA) and other regulatory authorities. The name and complete details of the entity are also pending approval. The company has not indicated a fixed timeline for completion and said further updates will follow after the requisite approvals.
