Keerthi Industries Limited has disclosed the Outcome of the Board Meeting for the consideration and approval of Addendum to the Business Transfer Agreement (BTA) entered into by the company ....
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Keerthi Industries' Board has approved an addendum to a Business Transfer Agreement (BTA) to sell its Electronics Business to Keerthi Holdings Pvt Ltd (formerly Hyderabad Bottling Co.) through a slump sale for INR 36 Crore. The Electronics Division contributed INR 24.29 Cr, or about 19.87% of the company's total income of INR 122.23 Cr in FY25, while the core business remains cement manufacturing (Suvarna Cements). The INR 36 Crore consideration, already received on 1st December 2025, will be used to repay INR 29.11 Cr in term loans and cash credit facilities, and INR 26.54 Cr in unsecured loans. The deal is expected to deliver annual interest savings of about INR 3.6 Crores, improving profitability and cash flow. The effective date of the slump sale is 31st March 2026, and shareholder approval via postal ballot (special resolution) is required since the buyer is a related party.
The slump sale should meaningfully deleverage the balance sheet and boost profitability through lower interest costs, potentially supporting a re-rating of the stock. However, the related-party nature of the deal and the need for shareholder approval via postal ballot introduce some governance considerations for investors.