Postal Ballot notice dated March 26, 2025
FERMENTA · price
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Awaiting price reaction for this filing.
Fermenta Biotech has sent out a postal ballot notice to its shareholders seeking approval for material related party transactions with its step-down subsidiary Fermenta USA LLC (FUSA), based in Texas, USA. The proposed transaction involves sale of the company's products to FUSA for distribution in North American and Latin American markets, with an aggregate value not exceeding Rs. 50 crore. This represents around 14% of the company's consolidated turnover for FY 2023-24 and approximately 180% of FUSA's standalone turnover. The voting period runs from April 3, 2025 to May 2, 2025, with the cut-off date for eligibility set as March 28, 2025. The resolution, if passed, will be valid for one year and supersede any previous similar resolution. Notably, the company's Managing Director, Executive Director, and CFO are also managers in FUSA, and as per SEBI rules, all related parties are barred from voting on this resolution.
This is a routine regulatory approval required for material related party transactions under SEBI listing rules. The transaction supports the company's overseas business expansion through its US subsidiary. Since related parties cannot vote, the outcome depends on non-promoter and public shareholders. Approval is expected as the transaction is in the ordinary course of business at arm's length terms, with no material impact on minority shareholders expected.