Disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Sale of Subsidiary Company
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Embassy Developments has entered into a Share Purchase Agreement with Pen India Limited to sell its entire 100% equity stake in Sepset Real Estate Limited, a wholly owned subsidiary. Sepset owns the commercial project 'Mega Mall' located in Jodhpur, Rajasthan, including all its assets, liabilities, and unsold inventory. The transaction will yield aggregate cash consideration of INR 100 Crore, expected to be completed within 60 days from the agreement dated April 11, 2026. For FY2025, Sepset contributed INR 18.55 crore in turnover (0.85% of consolidated) but had negative net worth of INR (-) 114.07 crore. The company states this monetisation is part of active portfolio management to unlock value, strengthen the balance sheet, and redeploy capital into core markets and high-growth opportunities. The buyer is not a related party.
This sale removes a subsidiary with negative net worth from Embassy Developments' books while generating INR 100 crore in cash. While the absolute contribution percentage is small, divesting the asset could be positive for shareholder returns if the capital is efficiently redeployed. The transaction is at arm's length and not part of any court-approved scheme.