Considered and approve initiation of the process for proposed disinvestment of the Company''s Partnership Interest in Shri Bajrang Chemical Distillery LLP.
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The board of Shri Bajrang Alliance has approved initiating the process to sell its 30% partnership interest in Shri Bajrang Chemical Distillery LLP (SBCD LLP). The company has also extended corporate guarantees for the LLP's borrowings, and these combined exposures have hurt the company's leverage and credit profile, as flagged by rating agency Infomerics in March 2025. The company wants to free up capital and financial flexibility to focus on expanding its core businesses, namely the Food Business and Steel Rolling Business. The disinvestment is subject to valuation, mutual discussions with the LLP and its partners, contractual terms, and statutory approvals. Directors have been authorized to appoint valuers, legal advisors, and consultants to take the process forward.
This is broadly positive for shareholders as it signals a sharper focus on the company's core businesses and could improve its credit profile by reducing contingent liabilities and leverage. The actual financial benefit will depend on the valuation received and the terms of the exit, which are yet to be worked out.