Disclosure under Reg 30 for Sale of undertaking
Awaiting price reaction for this filing.
Konark Synthetic Ltd has completed the sale of its property at Plot No. 25, Silvassa Industrial Co-op. Society to M/s. Amar Texoweaves LLP for a total consideration of Rs. 7.00 Crores on July 15, 2025. The property being sold contributed 98% of the company's total income during the last financial year, making this a highly significant transaction. The buyer is an unrelated third party (a Surat-based LLP) and the sale is not a related party transaction. Shareholders had approved the deal via special resolution on May 15, 2025. The proceeds will be primarily used to repay existing borrowings and interest obligations, with the aim of improving the debt-to-equity ratio and reducing finance costs. The company mentioned it may lease back the property or lease another one to continue operations without long-term capital tie-up.
This is a major event for shareholders — the company is selling an asset that generated nearly all of its revenue, which raises questions about future business continuity and revenue base. While debt reduction is positive for the balance sheet, the loss of 98% of revenue-generating assets is a significant concern unless reinvestment or leasing plans materialize quickly.