Memorandum of Understanding
Price
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Awaiting price reaction for this filing.
Facor Alloys Ltd has signed a non-binding Memorandum of Understanding (MoU) on June 3, 2025 with M/s. Rawmat Mining and Minerals, a partnership firm, for the proposed sale of certain assets at its Shreeramnagar plant in Vizianagaram, Andhra Pradesh. The plant has been under shutdown since October 31, 2023, and the sale is aimed at meeting pressing and unavoidable financial liabilities. The buyer will pay ₹10 Crores as an advance, representing 20% of the indicative asset value, with the deal expected to complete within one year of contract award. The transaction is not a related party deal and falls outside any Scheme of Arrangement, requiring shareholders' approval through a postal ballot.
For shareholders, this signals an attempt by the company to monetize idle manufacturing assets to reduce liabilities rather than a strategic growth move. Since the MoU is non-binding and the plant has been shut down since 2023, the stock price impact may be limited unless the deal converts into a binding agreement with higher valuation.