Sale of Immovable Assets Req 30
Awaiting price reaction for this filing.
The Board of Shree Rajeshwaranand Paper Mills approved the sale of three immovable properties — two large land parcels in Bharuch, Gujarat (totalling about 2.06 lakh sq. metres) and a small office in Ahmedabad — to M/s. Buildify Terra Firma LLP for a total consideration of approximately Rs. 16.17 crore (Rs. 2.74 cr + Rs. 13.12 cr + Rs. 31.08 lakh). The buyer is a related party: its designated partners are the company's own Managing Director Mr. Bhavesh Javerbhai Vekaria and CFO Mr. Himmatbhai Sheladia, making it a promoter-group entity. The company is currently executing a Resolution Plan approved by NCLT on 27 November 2024 after going through the insolvency resolution process. The sale proceeds are intended to repay unsecured loans and fund working capital needs. The Board also confirmed the appointment of M/s. K P J & Co as statutory auditor, designated two additional directors (including an independent woman director), and appointed M/s. CBL & Co as internal auditor.
This is a sizeable related-party transaction where assets are being sold at arm's length to an LLP controlled by the company's own MD and CFO, which may raise governance concerns for minority shareholders. The sale is necessary to repay debts and fund operations under the ongoing Resolution Plan, and the deal must close within 180 days. Shareholders should monitor the valuation and ensure proceeds are used as stated.