Rights issue investment of Rs. 75 lakh in wholly owned subsidiary
Vedavaag Systems has made a further investment in its wholly owned subsidiary, Vedavaag Financial Insurance Broking Services Private Limited (VFIBSPL), through a rights issue.
By ScoutQuest · · 2 min read
- Investment in subsidiary
- 7,50,000 equity shares of Rs. 10/- each, an investment of INR 75 lakh in cash
- Shareholding in VFIBSPL
- shareholding percentage in VFIBSPL stays unchanged — it continues to be a wholly owned subsidiary
- Subsidiary turnover
- 50,216 in 2023-24, 30,628 in 2024-25 and 1,254 in 2025-26
The company informed the exchanges that it has made a further investment in its wholly owned subsidiary, Vedavaag Financial Insurance Broking Services Private Limited (VFIBSPL), by subscribing to a rights issue of that subsidiary.
What the update says
- The company subscribed 7,50,000 equity shares of Rs. 10/- each through a right issue.
- The investment is INR 75 lakh (Rupees Seventy-Five Lakhs Only), and the consideration is cash.
- The company already held 100% of VFIBSPL, and its shareholding percentage in the subsidiary will remain unchanged. VFIBSPL will continue to be a wholly owned subsidiary.
- VFIBSPL, being a wholly owned subsidiary, is a related party of the company. The transaction falls within the ambit of related party transactions and is stated to be at arm's length.
Why the subsidiary matters
VFIBSPL operates in insurance agency and broking services. IRDAI has granted it in-principle approval to act as a Direct Insurance Broker (Life and General) vide communication dated October 07, 2026.
About the subsidiary
- Incorporated on 19/04/2021, an Indian company incorporated under the Companies Act, 2013.
- Turnover of VFIBSPL for the financial year ended March 31, 2026 was Rs. 1,254/-.
- Turnover over the last three years: 50,216 in 2023-24, 30,628 in 2024-25 and 1,254 in 2025-26.
How to read it
The money moves from the listed company into a business it already owns in full. Since the holding is already 100%, the rights issue does not alter the ownership structure or the company's percentage stake in VFIBSPL — the visible change is the capital going into the subsidiary. The amount involved is INR 75 lakh, and it is being paid in cash. The update places the subsidiary in insurance agency and broking, an activity linked to the in-principle approval from IRDAI to act as a Direct Insurance Broker (Life and General). The turnover figures shown for the subsidiary over the three years are at a small scale, so the investment can be seen in the context of a subsidiary that is still at an early stage of its business.
Also from VEDAVAAG Systems
₹75 lakh rights issue subscription in wholly owned insurance broking subsidiary
14 Oct 2026
IRDAI in-principle approval to wholly owned subsidiary for Direct Insurance Broker registration
7 Oct 2026
Board Approves Investment in Wholly Owned Insurance Broking Subsidiary
24 Sep 2026
More numbers
- Investment in subsidiary through rights issueINR 75,00,000/-
- Equity shares subscribed7,50,000
- Face value per equity shareRs. 10/-
- VFIBSPL turnover for FY ended March 31, 2026Rs. 1,254/-
- VFIBSPL turnover 2023-2450,216
- VFIBSPL turnover 2024-2530,628
- VFIBSPL turnover 2025-261254
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