First tranche capital infusion completed in Kanoo JV; company now holds controlling 51% stake

First tranche of capital infusion in the Kanoo JV completed.

Thu 1 Oct 2026

First tranche infusion by company

SAR 15.30 million (approximately Rs. 39,35,54,250/-)

Stake held

51%

Kanoo contribution

SAR 14.70 million

Second tranche

SAR 30 million

Impact

The JVC becomes a subsidiary

Capital infusion into the joint venture - first tranche completed

• The company infused SAR 15.30 million (approximately Rs. 39,35,54,250/-) as its share of the first funding tranche.
• That is its 51% share of the first tranche of SAR 30 million; Kanoo contributed SAR 14.70 million, the remaining 49%.
• The cost of acquisition is stated as SAR 15,300,000, for 153,000 shares having a face value of SAR 100/- each.
• The consideration is cash.

What the company now holds

Following the completion of this initial equity subscription, the company holds a controlling 51% stake in the JVC, with Kanoo holding 49%. The stated impact is that the JVC, following the infusion, will become a subsidiary of the company.

What happens next

The second tranche of funding, totalling SAR 30 million - comprising SAR 15.30 million from the company and SAR 14.70 million from Kanoo - will be infused subsequently in accordance with the agreed investment schedule. The acquisition is indicatively expected to be completed post the conclusion of the second funding tranche, and the company will intimate the exchanges upon final completion.

About the joint venture

• Name: Kanoo Unimech Advanced Manufacturing Solutions
• Authorized share capital: SAR 60,000,000
• Size / turnover: NIL, business yet to commence
• Industry: Oil & Gas
• Incorporated on 18th December, 2025
• Purpose: a greenfield advanced machining and remanufacturing facility at Dammam, Saudi Arabia
• Target markets: upstream oil & gas, utilities, defense and mining, addressing growing localization demand for precision engineering services
• Object of the infusion: to provide capital for business operations

The company has stated that the transaction is not a related party transaction and that no promoter, promoter group or group company interest is involved. No governmental or regulatory approvals are required for the acquisition.

How to read this

This is a step in executing a joint venture agreement the company had earlier intimated. The money being put in is cash, and it buys equity - 153,000 shares at a face value of SAR 100/- each, giving the company control of the JVC. The rupee figure of about Rs. 39,35,54,250/- is the approximate value of the first tranche contribution. Since the JVC's business is yet to commence and it has NIL turnover, the near-term financial contribution from the JVC itself would depend on how the planned facility progresses.

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