Announced Sat, 28 Mar · 12:49 IST

As per the enclosed letter.

Core Business DivestedStrategic Transactions View source PDF

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Price reaction · full curve 14 horizons · vs prior close
-7.2%1-day move
₹51.75
prior close
base price
After-mkt
timing
5m10m15m30m1D2D3D4D5D7D15D1M2M3M
-7.2+1.8+2.1-1.9-3.4-3.6-11.5-23.1
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AI summary

Keerthi Industries has fixed 31st March 2026 as the effective date for selling its Electronics Division to Keerthi Holdings Private Limited (a related party) through a slump sale. The buyer has already paid the full consideration of INR 36 Crore on 1st December 2025. The Electronics Division contributed about 19.87% of the company's total income (INR 24.29 Cr out of INR 122.23 Cr) in FY 2024-25. The company, which is primarily a cement manufacturer (Suvarna Cements), will use the sale proceeds to repay term loans, cash credit facilities, and unsecured loans totalling about INR 55.65 Cr. Management estimates annual interest savings of around INR 3.6 Crore after this debt reduction, which should improve profitability. There is no change to the company's shareholding pattern as a result of the deal.

Likely market impact

The deal is already funded and will significantly deleverage the balance sheet, boosting profitability through lower interest costs. Post-sale, Keerthi Industries will be a pure-play cement company, which could lead to a re-rating by the market, though losing a nearly 20% revenue contributor is a trade-off for long-term investors.