Rail Vikas Nigam Limited has incorporated a new wholly owned subsidiary, Sabbavaram Sheelanagar Road Development Limited, in Andhra Pradesh. The company filed the disclosure with stock exchanges on May 16, 2025, confirming that it holds 100% shareholding in the new entity. This incorporation marks an expansion of Rail Vikas Nigam's infrastructure development capabilities within the state, specifically targeting road development projects under its main line of business.

The disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, the company submitted a declaration as per SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. The filing confirms that the transaction does not constitute a related party transaction, as there is no interest from promoters or group companies in the target entity other than Rail Vikas Nigam itself.

Subsidiary Details

Sabbavaram Sheelanagar Road Development Limited was incorporated on May 15, 2025. The entity is registered with the Corporate Identity Number U42101AP2025GOI119373. Its primary business focus is construction and infrastructure, aligning with the parent company's core operations. No governmental or regulatory approvals were required for this internal incorporation process.

Strategic Context

The formation of this subsidiary allows Rail Vikas Nigam to execute specific road development projects in Andhra Pradesh through a dedicated legal entity. As the subsidiary is wholly owned, all financial results and operational activities will be consolidated into the parent company's financial statements. The filing indicates no cash consideration or share swap was involved, as this was a fresh incorporation rather than an acquisition of an existing entity. Company Secretary Kalpana Dubey signed the disclosure, certifying the accuracy of the information provided to the National Stock Exchange of India Ltd. and BSE Ltd.

rail vikas nigam has entrusted Abhishek Kumar with the additional charge of Director (Finance) on its board, effective June 1, 2025. The Ministry of Railways issued Order No. 2016/E(O)II/40/15 dated May 29, 2025, assigning the role to Kumar, who currently serves as Executive Director Finance (Budget) at the Railway Board. This interim leadership arrangement addresses the vacancy created by the superannuation of outgoing Director Sanjeeb Kumar on May 31, 2025, ensuring continuity in financial oversight while final approval from the Competent Authority is pending.

Kumar is yet to formally assume charge of the post but will do so on or after June 1, 2025. He holds the position in addition to his existing responsibilities at the Railway Board. The disclosure confirms that Kumar is not debarred from holding office by SEBI or any other authority and holds nil equity shares in the company. He is also not related to any other director on the board.

An Indian Railway Accounts Service (IRAS) officer of the 2001 batch, Kumar brings over two decades of experience in railway finance. His career includes roles as Financial Advisor dealing with expenditure, earnings, government accounting, and budgeting across divisional, headquarters, and ministry levels. He previously served as General Manager (Finance) at Centre for Railway Information Systems (CRIS), overseeing Accounting IT Applications including IPAS and GST modules. Notably, he was the Chief Project Manager for the pioneering Accrual based Accounting project for Indian Railways.

Kumar holds a Bachelor of Technology in Civil Engineering from NIT Calicut and a PGDM (Exec.) in Finance from IMT Ghaziabad. At the Railway Board, he worked in the Budget Directorate at the Director level, coordinating with the Ministry of Finance on Railway Budget preparation. His expertise spans both operational finance and strategic budgeting within the public sector infrastructure domain.

Updated Board Composition

The company disclosed its updated list of directors following the appointment. The board now comprises eight members, including independent and government nominee directors.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 read with Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing references SEBI Circular No. LIST/COMP/14/2018-19 dated June 20, 2018, regarding director debarment status, and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, for relationship declarations.