Financial Rebound: DEE Invests $2.4M to Stabilize Thai Piping Unit

DEE Development Engineers Limited is investing $2.4 million in its wholly owned subsidiary, DEE Piping Systems (Thailand) Co. Ltd., to aid debt repayment and strengthen its financial position.

The investment involves acquiring 16,161,616 equity shares, representing a 24.51% stake in the Thai subsidiary’s existing paid-up equity capital. Despite this transaction, DEE Development Engineers will retain full ownership, holding a total of 82,092,974 equity shares of THB 5 each.

Established in October 2014, DEE Piping Systems (Thailand) specializes in fabricating pipe spools and industrial piping components. In FY 2023-24, the company generated a turnover of ₹8,239.01 lakh ($9.5 million) but reported a net loss of ₹433.48 lakh, with a negative net worth of ₹1,181.04 lakh as of March 31, 2024.

However, the subsidiary has shown consistent revenue growth, with turnover increasing from ₹4,098.39 lakh in 2021-22 to ₹6,410.78 lakh in 2022-23 before reaching current levels. The fresh capital infusion is expected to stabilize its finances and support future expansion.

News by Rahul Yelligetti.