Asset Transfer Agreement
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Awaiting price reaction for this filing.
Facor Alloys has signed an Asset Transfer Agreement on 2nd August 2025 to sell assets located at its Shreeramnagar plant in Vizianagaram, Andhra Pradesh, to M/s. Rawmat Mining and Minerals, a partnership firm unrelated to the promoters. The total consideration is ₹47.15 crore, and the deal is being done specifically to meet pressing and unavoidable financial liabilities. The company's manufacturing facilities at this plant have been under shutdown since 31st October 2023, so these assets are not currently generating revenue. Shareholders had already approved the sale via postal ballot on 9th July 2025. The sale is outside any Scheme of Arrangement and is not a related party transaction.
This is essentially a distressed asset sale aimed at paying off liabilities rather than a strategic divestment, signalling ongoing financial stress at the company. With the plant already shut for nearly two years, shareholders should view this as a liability-management move; the ₹47.15 crore inflow could ease short-term pressure but does not indicate a path back to operational profitability.