Kamdhenu Limited has informed regarding Disclosure of Acquisition
KAMDHENU · price
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Kamdhenu Limited's Loan and Investment Committee approved the acquisition of 56,000 equity shares of MKPIPL at Rs. 900 per share, aggregating to Rs. 5.04 crore, via subscription to a preferential issue. MKPIPL is an existing franchisee unit of Kamdhenu engaged in manufacturing iron and steel products (billet capacity of 3,60,000 MTPA) based in Raipur, Chhattisgarh. Post-acquisition, Kamdhenu's stake in MKPIPL will rise from 7.79% to 9.72%. The acquisition is part of Kamdhenu's strategy to remodel its franchisee business model and is not a related party transaction. MKPIPL's turnover grew sharply from Rs. 649.68 crore in FY24 to Rs. 1,058.18 crore in FY25 (provisional). The deal is expected to be completed by July 31, 2025, using cash consideration, and no regulatory approvals are required.
This is a relatively small (Rs. 5.04 crore) strategic stake increase in an existing franchisee, not a transformative deal, so short-term stock price impact is likely limited. However, it signals Kamdhenu's deeper commitment to its franchisee-led branded steel model, which could support long-term volume and brand growth.