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 Ltd has completed the sale of its entire stake (both equity and preference shares) in subsidiary Dinesh Remedies Ltd on 3rd September 2025. The buyer is Mr. Dixit Rashmikantbhai Patel and his affiliates, who were existing shareholders of Dinesh Remedies. The company received total consideration of about Rs. 5.43 crore (Rs. 3.14 crore for equity shares and Rs. 2.29 crore for optionally convertible preference shares). With this disposal, Dinesh Remedies has ceased to be a subsidiary. Notably, Dinesh Remedies contributed about 30% of consolidated turnover (Rs. 34.29 crore) but only 5.94% of consolidated net worth, and was incurring persistent losses. Shareholders had earlier approved the deal via postal ballot in December 2024.
The exit removes a loss-making subsidiary that was a drag on consolidated financials, which is a positive for shareholders. The disposal should simplify the business and potentially improve profitability, though the cash received is relatively small compared to the size of the company.