ACQUISITION OF 51% STAKE IN M/S. VEDSHREE FOOD INDUSTRIES PRIVATE LIMITED.
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Parvati Sweetners and Power Ltd has executed a Share Purchase Agreement to acquire 51% equity stake in Vedshree Food Industries Private Limited for approximately INR 6 crore. Vedshree is a recently incorporated entity (July 2024) engaged in Compressed Bio-Gas, Bio-CNG, Biogas, and Renewable Natural Gas production. The acquisition is a related party transaction as common directors and promoters serve on both boards. The deal is structured at arm's length based on a valuation report and will be completed within 6 months, subject to conditions precedent. This acquisition aligns with the company's strategy to expand into renewable energy and diversify its business presence.
The acquisition provides Parvati Sweetners entry into the fast-growing compressed bio-gas and renewable energy sector, potentially creating new revenue streams. However, being a related party transaction with a newly formed entity (paid-up capital of just INR 1 lakh), investors should monitor for proper disclosure and value realization.