NIBENSENIBE LimitedHighNeutral
Announced Mon, 30 Mar · 21:50 IST

NIBE Limited has informed the Exchange about Sale of Step down subsidiary of Company i.e Nibe Aeronautics Limited

Strategic Transactions View source PDF

NIBE · price

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Price reaction · full curve 14 horizons · vs prior close
+11.7%1-day move
₹815.00
prior close
₹853.90
base price
After-mkt
timing
5m10m15m30m1D2D3D4D5D7D15D1M2M3M
+7.0+6.7+6.1+7.0+11.7+13.9+12.5+17.9+15.3+24.4+28.0+28.5+87.1+103.8
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AI summary

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.

Likely market impact

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.