VSVEDAVAAG Systems533056New investment

₹75 lakh rights issue subscription in wholly owned insurance broking subsidiary

Vedavaag Systems has made a further investment in its wholly owned subsidiary through a rights issue.

By ScoutQuest · Wed 14 Oct 2026, 6:07 PM IST · 2 min read

Shares Subscribed

7,50,000 equity shares of Rs. 10/- each

Total Investment

INR 75 lakh

Shareholding in Subsidiary

100%; remains a wholly owned subsidiary

More money into a wholly owned subsidiary

Vedavaag Systems Limited has made a further investment in Vedavaag Financial Insurance Broking Services Private Limited (formerly Vedavaag Financial Services Private Limited), a wholly owned subsidiary, by subscribing to equity shares through a rights issue.

The transaction at a glance

• Shares subscribed: 7,50,000 (Seven Lakhs Fifty Thousand) equity shares
• Face value per share: Rs. 10/- (Rupees Ten Only)
• Total investment: INR 75 lakh (Rupees Seventy-Five Lakhs Only)
• Consideration: Cash
• Basis: rights issue

What does not change

The company already holds 100% of the share capital of VFIBSPL. With this investment, its shareholding percentage in the subsidiary remains unchanged, and VFIBSPL continues to remain a wholly owned subsidiary.

Related party angle

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 at arm's length. Apart from what is stated, the Promoter, Promoter Group and Group Companies are not interested in VFIBSPL, and the company itself has no interest in VFIBSPL except to the extent of the shares it holds.

What the subsidiary does

VFIBSPL is engaged in the activities of insurance agents and brokers, in the insurance agency and broking services industry. It is an Indian company incorporated under the Companies Act, 2013, incorporated on 19/04/2021.

On the regulatory front, IRDAI has granted in-principle approval to VFIBSPL to act as a Direct Insurance Broker (Life and General) vide communication dated October 07, 2026.

Turnover trend (Amt in Rs.)

• 2023-24: 50,216
• 2024-25: 30,628
• 2025-26: 1,254

The turnover of VFIBSPL for the financial year ended March 31, 2026 is stated as Rs. 1,254/-. Readers can see from the three-year figures that the entity was operating at a very small revenue base in the years shown.

Approvals and timeline

For this transaction, the details of governmental or regulatory approvals required are marked Not Applicable, and the indicative time period for completion of the acquisition is marked Not Applicable.

The company also intimated that the Board Meeting commenced at 05:30 P.M. and ended at 05:50 P.M.

How a retail investor can read this

• This is an infusion of capital by the parent into an existing wholly owned subsidiary, so the parent's ownership position is unchanged at 100%.
• The cash outgo disclosed is INR 75 lakh for 7,50,000 shares at Rs. 10/- each.
• The subsidiary holds an IRDAI in-principle approval to act as a Direct Insurance Broker (Life and General), which indicates the line of business it is being positioned for.
• The transaction is a related party transaction and is stated to be at arm's length.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.

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