Leap India Limited has invested ₹2.04 crore in its wholly owned foreign subsidiary, LEAP Gulf Company, incorporated in the Kingdom of Saudi Arabia. The company remitted SAR 785,000 to subscribe to equity shares, reinforcing its strategic expansion plans in the region.

The transaction involves the subscription of 7,850 equity shares at a face value of SAR 100 each. Based on the applicable exchange rate of SAR 1 to ₹26, the total consideration amounts to ₹2,04,10,000. Leap India will continue to hold 100% of the equity share capital of LEAP Gulf following this allotment.

LEAP Gulf was incorporated on December 3, 2025, as a Limited Liability Company under Saudi Arabian law. As a newly formed entity, it does not yet report turnover. The subsidiary is engaged in manufacturing wooden containers and plastic products, repairing equipment, and renting machinery and tangible goods.

Investment Details

The investment was made under the automatic route in accordance with the Foreign Exchange Management Act (FEMA), requiring no specific governmental or regulatory approvals. The company stated that the move aligns with its business objectives and overseas expansion strategies.

LEAP Gulf is a related party to Leap India, being a wholly owned subsidiary. The company confirmed that the transaction was undertaken on an arm's-length basis, with necessary approvals obtained. No other promoters or group companies hold an interest in LEAP Gulf.

Leap India Limited promoters have pledged an aggregate of 2,25,64,398 equity shares, representing 5.10% of the total share capital, to secure debentures issued by a promoter group entity.

The disclosure was filed with the stock exchanges on September 11, 2026, pursuant to Regulation 31(1) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Details of Encumbrance

The pledge involves shares held by two promoter entities in favor of Catalyst Trusteeship Limited, acting as trustee for debenture holders.

Sunu Mathew, a promoter, created a non-disposal undertaking on his shares on September 8, 2026. Matyas Possessions Private Limited, a member of the promoter group, pledged its entire holding of 26,59,108 shares on September 7, 2026.

Regulatory Context

The company noted that these shares were previously pledged but released for the limited purpose of creating a lock-in under Regulations 16(1)(b) and 17 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The current encumbrance was created as per agreed terms following that release.

What the Numbers Show

The post-event encumbered holding stands at 5.10% of the total share capital on a diluted basis. The promoter group’s total holding remains at 55.64% of the total share capital, indicating that the majority of the promoter stake remains unencumbered.