Penny Stock To Incorporate Subsidiary In UAE, Scrip Under Rs 1 Locked In 5% Upper Circuit; Do You Own?

The establishment of a fully owned subsidiary in the United Arab Emirates (UAE) has been approved by the board of directors of Sharanam Infraproject and Trading Ltd (BSE - 539584), a real estate company. Over the next six to nine months, the company plans to invest between AED 15.5 million to AED 18 million, or Rs 35 to 40 crores, comprising working capital and deal facilitation expenses. This projected subsidiary will be established in Dubai, United Arab Emirates, in accordance with the relevant legislative framework and function as the company's strategic international arm.

The shares of Sharanam Infraproject and Trading wrapped up Friday, June 20th, at an upper circuit limit of Rs 0.43 per share, up 5% from the previous close with a market capitalization of Rs 25.54 Cr, after the announcement was made.

"The subsidiary will focus on participating in the real estate sector in the UAE, with a specific emphasis on land arbitrage transactions. The model is designed to acquire strategically located land parcels and subsequently resell them to larger developers or institutional buyers at modest margins," said Sharanam Infraproject in a regulatory filing.
Where appropriate, the FEMA and RBI standards for overseas direct investment (ODI) shall be followed in the structuring of this project.

Financially, Sharanam Infraproject & Trading's net profit climbed 3840.00% to Rs 3.94 crore in the quarter that ended in March 2025, compared to Rs 0.10 crore in the previous quarter that ended in March 2024, according to Business Standard. From Rs 1.76 crore in Q4FY24, sales increased by 1254.55% to Rs 23.84 crore in Q4FY25. Compared to Rs 0.03 crore in the year ending March 2024, net profit jumped 16833.33% to Rs 5.08 crore in the entire financial year ending March 2025. In comparison with Rs 1.76 crore in FY24 sales improved 2025.00% to Rs 37.40 crore in FY25.

The main business of publicly traded Sharanam Infraproject & Trading Ltd. is the selling and distribution of steel products, with an emphasis on supply chain management in India's infrastructure and construction industries. Ahmedabad, Gujarat, is home to the company's registered office.