Sale of immovable assets - Intimation under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('SEBI Listing Regulations')
Awaiting price reaction for this filing.
The board approved selling three immovable properties — two large land parcels in Bharuch (Gujarat) totalling about 206,408 sq mt and an office flat in Ahmedabad — to Buildify Terra Firma LLP for a combined consideration of roughly Rs. 16.17 crore. The buyer is a promoter-group-related entity where the company's Managing Director (Bhavesh Vekaria) and CFO (Himmatbhai Sheladia) are designated partners, making this a related-party transaction done at arm's length. The company is currently executing a Resolution Plan approved by NCLT in November 2024 after going through the insolvency resolution process, and the sale proceeds will be used to repay unsecured loans and fund working capital. The board also changed the designations of two directors — Ms. Avani Shah (now Independent Woman Director) and Mr. Pratik Kakadia (now Non-Executive Director) — appointed M/s. K P J & Co as statutory auditor to fill a casual vacancy, and appointed M/s. CBL & Co as internal auditor.
Shareholders should note this is a sizeable asset sale (~Rs. 16.17 crore) to a promoter-linked LLP, which while approved by the audit committee and at arm's length prices, transfers company land to entities connected with the MD and CFO — a governance point worth watching. The ongoing execution of the NCLT-approved Resolution Plan signals the company is still in a restructuring phase rather than normal operations.