Approved the investment of funds of the company in Avyom Foodtech Private Limited.
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DSM Fresh Foods' board has approved investing up to Rs 7.5 crore in Avyom Foodtech Private Limited (formerly IEY Education Pvt Ltd) by participating in a private placement, acquiring 51% to 60% stake and making it a subsidiary. Avyom is in the food processing sector (ready-to-eat, frozen foods, snacks, sauces) but had a very small turnover of just Rs 14.90 lakhs in FY25. The deal is a related party transaction since promoters and directors are common to both companies, though it will be done at arm's length. The board also approved reallocating Rs 1,000 lakhs of unutilized IPO funds — Rs 500 lakhs each from Capital Expenditure and Marketing budgets — into an 'Unidentified Acquisition' head. The target deal is expected to close within 3-9 months and is subject to shareholder approval via postal ballot.
The acquisition strengthens DSM's food processing footprint but the target is tiny (Rs 14.9 lakh turnover) and the deal involves common promoters, which may raise governance concerns among investors. The shift of Rs 10 crore from growth budgets (CapEx and Marketing) into an unnamed acquisition pool could also draw scrutiny, as shareholders were originally promised these funds for specific uses at the time of the IPO.