63 moons technologies limited , a prominent technology company, has received a significant green light for its investment plans. The National Company Law Tribunal (NCLT) Committee has approved the company's proposal to participate in a Rights Issue offered by its non-material subsidiary, National Spot Exchange Limited (NSEL).

Investment Details

The initial investment approved amounts to Rs 7.50 crores, which represents 25% of the total issue price. This move aligns with the company's strategic growth plans and its commitment to supporting its subsidiaries. The investment structure allows for flexibility, as 63 moons technologies will make subsequent investments based on calls received from NSEL.

Regulatory Compliance and Shareholder Approval

The approval from the NCLT Committee follows a series of regulatory and corporate governance steps:

1. An undertaking submitted to the Supreme Court on April 11, 2019
2. Shareholder consent obtained through a Postal Ballot

These steps underscore the company's commitment to transparency and adherence to legal and regulatory requirements.

Official Communication

In an official communication to the stock exchanges, Hariraj Chouhan, Sr. VP & Company Secretary of 63 moons technologies limited, stated:

"Pursuant to the applicable regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and in terms of the Undertaking dated 11th April 2019 submitted by the Company to the Hon'ble Supreme Court and the Shareholder's approval obtained through Postal Ballot, we wish to inform that the National Company Law Tribunal (NCLT) Committee at its meeting held today, has approved the Company's subscription to the Rights Issue offered by its non-material subsidiary viz. National Spot Exchange Limited (NSEL), initially for Rs. 7.50 crores, being 25% of the issue price and subsequently as per the Calls to be received from NSEL."

Market Implications

This development is expected to strengthen the financial position of NSEL and potentially create value for 63 moons technologies' shareholders. The structured approach to the investment, with an initial commitment followed by subsequent calls, demonstrates a prudent financial strategy.

As the technology sector continues to evolve rapidly, such strategic investments in subsidiaries could play a crucial role in fostering innovation and maintaining competitive edge. Investors and market analysts will likely keep a close watch on how this investment unfolds and its impact on both 63 moons technologies and NSEL in the coming months.

Stakeholders are advised to monitor further announcements from the company for any updates on this investment and its potential outcomes.

63 Moons Technologies limited, a leading technology solutions provider, has reported a robust financial performance for the first quarter. The company's unaudited financial results, approved by its Board of Directors on August 12, showcase significant growth and profitability.

Financial Highlights

• Net Profit: The company posted a net profit of ₹1,731.01 crore, marking a substantial turnaround from a loss of ₹1,210.99 crore in the same quarter last year.
• Total Income: Total income surged to ₹6,785.64 crore, up from ₹4,438.35 crore year-over-year, representing a growth of about 53%.
• Earnings Per Share: The basic and diluted earnings per share (not annualized) stood at ₹3.76.

Key Developments

1. Investment in Subsidiary: During the quarter, 63 Moons Technologies made an additional investment of ₹750 crore in its subsidiary, National Spot Exchange Ltd (NSEL). However, this investment was subsequently written off.

2. Annual General Meeting: The company has scheduled its 37th Annual General Meeting for September 24, to be held via video conferencing.

3. Dividend Proposal: The Board has proposed a final dividend of ₹1.20 per share for the year ended March 31, subject to shareholder approval and court orders.

Segment Performance

The company's financial results are categorized into two main segments:

The 'Others' segment includes process management, shared business support services, IT infrastructure sharing, and NBFC-related services.

Ongoing Legal Proceedings

63 Moons Technologies continues to face legal challenges related to the National Spot Exchange Limited (NSEL) matters. The company is involved in various investigations and litigations, including:

• Civil suits filed against the company in relation to events on the NSEL trading platform.
• Ongoing investigations by the Economic Offences Wing of Mumbai Police, Central Bureau of Investigation, and other regulatory bodies.
• Proceedings under the MPID Act and the Prevention of Money Laundering Act.

The management maintains that the company will be able to defend its position in these legal matters.

Future Outlook

Despite the legal challenges, 63 Moons Technologies has demonstrated strong financial performance this quarter. The significant increase in total income and the turnaround to profitability indicate positive momentum for the company. However, the ongoing legal proceedings and their potential outcomes remain a factor to watch in the coming quarters.

Investors and stakeholders will be keenly observing how the company navigates its legal challenges while maintaining its growth trajectory in the technology solutions sector.

Note: All financial figures are in Indian Rupees (₹) and are based on the unaudited financial results for the quarter.