Sale of Company''s environment business to its wholly-owned subsidiary
FERMENTA · price
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Fermenta Biotech Ltd's board has approved transferring its environment business to Fermenta Environment Solutions Pvt Ltd (FESPL), its wholly-owned subsidiary, through a slump sale on a going concern basis. The environment division contributed Rs. 22.20 crores (5.02%) to standalone revenue and Rs. 15.53 crores (4.09%) to net worth as of March 31, 2025. The company will receive Rs. 19 crores as consideration, with the deal effective from October 1, 2025 and to be completed within 60 days. Fermenta Biotech's total standalone income for FY25 was Rs. 442.20 crores. The transaction is a related-party deal but conducted at arm's length, and there will be no change in the shareholding pattern.
This is an internal restructuring rather than an external sale, so shareholders face no dilution or open offer. Investors should note that while the environment vertical was a small part of revenue, the divestment allows both entities to focus on their specialised operations, potentially improving efficiency at the parent level.