GrandiT's (SHA:688549) shareholding in Jingheng Xidao (Shanghai) Technology will drop to almost 37% from 44.8% after raising the subsidiary's capital, according to a Shanghai bourse filing on the weekend.
The electronic chemical materials producer's shares rose 4% at the close of Monday's trade.
Jingheng Xidao's total shares will rise to 422 million from 177 million after the capital raise.
The company is among the investors that will raise Jingheng Xidao's, investing 100 million yuan to subscribe for newly increased registered capital of up to 30.1 million yuan.