Board Approves New Wholly Owned Subsidiary in Abu Dhabi and Raising Saudi JV Stake from 60% to 90%

The Board approved two Middle East moves.

Mon 28 Sep 2026

New Abu Dhabi Subsidiary

Incorporation of wholly owned subsidiary Likhitha Infrastructure Middle East LLC in Abu Dhabi, UAE, 100% owned, in Oil & Gas pipeline/EPC…

Saudi Stake Increase

Acquisition of additional 30% in Likhitha HAK Arabia Contracting Company, raising holding from 60% to 90%

Saudi Acquisition Consideration

Purchase of 150 equity shares for up to SAR 525,000 in cash

Completion Timeline

Indicative time period for completion of the acquisition: 6 Months

Saudi Entity Financials

Turnover FY 2023-24, FY 2024-25, and FY 2025-26: Nil

What the Board approved

Two items were approved at the Board meeting, both aimed at the Middle East.

1) New wholly owned subsidiary in Abu Dhabi

• Proposed name: Likhitha Infrastructure Middle East LLC, or such other name as approved by authorities.
• Country: Abu Dhabi, United Arab Emirates. The entity is yet to be incorporated.
• Industry: Oil and Gas Pipeline / EPC infrastructure contracting.
• Likhitha Infrastructure Limited will own 100% of the entity, making it a wholly owned subsidiary and a related party under applicable regulations.
• Subscription to share capital will be in cash.

2) Higher stake in the Saudi subsidiary

• Target: Likhitha HAK Arabia Contracting Company, registered at Al Khobar, Kingdom of Saudi Arabia, incorporated on 10 December 2022.
• Business: Oil & Gas EPC services including pipelines, refineries and oil wells.
• Paid-up capital: SAR 500,000 (500 equity shares).
• Present structure: Likhitha 60%, Arabian HAK Company Ltd 40%.
• Proposed purchase: 150 equity shares, representing 30% of paid-up equity capital, from Arabian HAK Company Ltd.
• Consideration: cash, aggregate of up to SAR 525,000, subject to applicable valuation requirements and definitive contractual agreements.
• Post completion, holding rises from 60% to 90%.

Financial background of the target

• Turnover FY 2023-24: Nil
• Turnover FY 2024-25: Nil
• Turnover FY 2025-26: Nil

So the entity being consolidated further has not recorded revenue in the last three financial years, per the update.

Timelines and approvals

• Indicative time period for completion of the acquisition: 6 Months.
• No governmental or regulatory approval is stated as required for the acquisition; procedural compliances will be handled in the ordinary course.
• For the Abu Dhabi entity, approval of the competent authority may be required.

Related party position

The acquisition does not fall within related party transactions. Arabian HAK Company Ltd, the selling shareholder, is not a related party of the company or its subsidiaries, and the promoter/promoter group/group companies have no interest in the target. The transaction is on an arm's length basis.

How investors may read it

The stated objective is to increase ownership and strategic control in the Saudi entity and strengthen presence in the Kingdom of Saudi Arabia, alongside a fresh UAE arm in the same line of business as the company's core oil and gas pipeline work. The rupee outlay involved is small relative to a listed company's scale, and the Saudi entity has yet to report turnover, so the immediate earnings effect is limited; the perception is one of geographic expansion. Note that both items are approvals of proposals — the UAE entity is yet to be incorporated and the stake purchase is subject to valuation and definitive agreements.

The Board meeting commenced at 01:30 PM and concluded at 02:50 PM.

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