NIBE Limited has informed the Exchange about Sale of Step down subsidiary of Company i.e Nibe Aeronautics Limited
NIBE · price
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Nibe Limited's subsidiary Nibe Defence and Aerospace Limited (NDAL) has signed a Share Purchase Agreement to sell its entire stake in step-down subsidiary Nibe Aeronautics Limited (NAL) to Mr. Nibe Ganesh Ramesh, who is a Promoter of Nibe Limited. The consideration is not less than Rs 1.52 crore, matching the original investment amount. NAL contributed 0% to the company's turnover and only Rs 191.19 lakhs (0.003%) to net worth in FY25, making it a non-operational entity. The deal is expected to close by May 30, 2026, after which NAL will cease to be a step-down subsidiary of Nibe Limited. The transaction qualifies as a related party transaction since the buyer is a promoter, and has been carried out at arm's length basis.
This is a minor housekeeping divestment with negligible financial impact, as the step-down subsidiary had zero revenue contribution. However, being a related party transaction (promoter buying it), shareholders should note the arm's length justification and valuation basis for the consideration.