Duncan Engineering Limited has established a wholly-owned subsidiary in the Kingdom of Saudi Arabia as part of its strategic expansion into the Middle East market. The company disclosed the incorporation of DEL Arabia Company on December 11, 2025, in compliance with SEBI Listing Regulations.

Subsidiary Details and Structure

The newly incorporated entity, DEL Arabia Company, has been established with specific operational and financial parameters designed to support Duncan Engineering's regional expansion strategy.

Capital Structure and Investment

The subsidiary's financial framework reflects Duncan Engineering's commitment to establishing a substantial presence in the Saudi Arabian market.

Business Objectives and Market Focus

DEL Arabia Company has been incorporated to carry out manufacturing business activities with a specific focus on expanding Duncan Engineering's market reach in the Middle East region. The subsidiary will concentrate on oil & gas and related projects, positioning the company to capitalize on opportunities in Saudi Arabia's energy sector.

Regulatory Compliance

The incorporation disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Duncan Engineering confirmed that no specific governmental or regulatory approvals were required for the incorporation process in Saudi Arabia.

Strategic Implications

This expansion represents Duncan Engineering's strategic move to establish direct operations in the Middle East, particularly targeting the oil & gas sector in Saudi Arabia. The wholly-owned subsidiary structure provides the parent company with complete operational control while enabling localized business activities in the Kingdom.

Duncan Engineering Limited (formerly known as Schrader Duncan Limited) has emerged victorious in a legal battle against Pelican Rubber Limited, as ruled by the Commercial Dispute Court in Hyderabad. The court's decision is expected to have a positive financial impact on Duncan Engineering, marking a significant development for the company.

Key Points of the Court Ruling

Background of the Case

Duncan Engineering initiated the litigation on October 31, 2018, which has been decreed in the company's favor with costs. This resolution comes after a prolonged legal process spanning over seven years.

Financial Implications

The court has directed Pelican Rubber Limited to pay Duncan Engineering a total of Rs. 83.92 lakh. This amount includes:

1. The principal sum of Rs. 60.38 lakh
2. Interest at 12% per annum from the date of the suit to the date of the decree
3. Future interest at 6% per annum from the date of the decree until the full realization of the amount

Duncan Engineering anticipates a favorable financial impact upon the realization of this awarded amount, which could potentially strengthen its financial position.

Company's Statement

In compliance with Regulation 30 of the SEBI (Listing Obligations Disclosure Requirements) Regulations, 2015, Duncan Engineering has formally notified the BSE Limited about this development. The company views this outcome as a positive step, expecting it to contribute to its financial health once the awarded amount is realized.

Conclusion

This legal victory for Duncan Engineering underscores the importance of resolving commercial disputes through proper legal channels. As the company moves forward, the financial boost from this ruling may provide additional resources for its operations and strategic initiatives. Investors and stakeholders will likely monitor how this development influences the company's financial statements in the coming quarters.