Update on Disposal of entire investment (i.e. Equity & Preference shares) held by the Company in Dinesh Remedies Limited.
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Shri Dinesh Mills has executed a Share Purchase Agreement on August 27, 2025, to sell its entire stake (both equity and preference shares) in Dinesh Remedies Limited to Mr. Dixit Rashmikantbhai Patel and his affiliates. Total sale consideration is around Rs. 5.43 crore (Rs. 3.14 crore for 1.30 crore equity shares and Rs. 2.29 crore for 20.97 lakh preference shares). The deal is expected to be completed on or before September 15, 2025, after which Dinesh Remedies will cease to be a material unlisted subsidiary of the company. Dinesh Remedies had contributed 30.09% (Rs. 3,428.71 lakh) to consolidated revenue and 5.94% to consolidated net worth for FY25, but was incurring persistent losses. The transaction is not a related-party deal and was earlier approved by shareholders via postal ballot in December 2024.
This divestment removes a loss-making subsidiary that accounted for nearly 30% of consolidated revenue, potentially improving future profitability but reducing overall scale. For shareholders, it's a portfolio cleanup move; the cash received (about Rs. 5.4 crore) is relatively small and unlikely to materially move the stock.