Approval of Board of Directors for Sale of Property owned by the Company.
Awaiting price reaction for this filing.
Konark Synthetic Ltd's Board has approved the sale of its land and building at Plot No. 25, Silvassa Industrial Co-op Society, which contributed 98% of the company's total income in the last financial year but is currently underutilized. The expected sale consideration is not less than Rs 6 crore, with completion targeted within one year of shareholder approval. The buyer will not belong to the promoter or promoter group, and the transaction is not a related party deal. An Extra Ordinary General Meeting (EGM) has been scheduled for May 15, 2025, with e-voting from May 12 to May 14, 2025, to seek shareholder approval for the sale.
The proceeds will primarily be used to repay existing borrowings and interest, which should reduce finance costs and improve the company's debt-to-equity ratio and liquidity. The company may lease back the property or lease an alternative to continue operations, so business continuity is not expected to be disrupted. For shareholders, this is a debt-reduction move that could strengthen the balance sheet, though the exact impact on stock price depends on the final sale price.