Announcement with respect to execution of Memorandum of Understanding
BIRLAPREC · price
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Awaiting price reaction for this filing.
Birla Precision Technologies has signed two MoUs with M/s. Swastik Developers to sell its closed Foundry Division assets in Aurangabad. The first MoU covers sale of foundry land (24,700 sq. meters) and built-up structure (10,538 sq. meters) for ₹27.31 crore. The second MoU covers sale of scrap (old machinery) for ₹2.75 crore, taking total proceeds to about ₹30.06 crore. This follows the earlier intimation (Feb 2025) regarding closure of the Foundry Division, which has been non-functional since February 2023. The company describes this as monetising non-core assets post the foundry shutdown, and further updates will follow definitive agreements.
This is a positive cash inflow of ~₹30 crore from selling idle/shut assets, which strengthens the balance sheet and signals a sharper focus on the core precision technologies business. Shareholders should watch for completion timelines and deployment of sale proceeds, but there is no impact on related-party concerns as the buyer is unrelated.