Approval for the sale of business undertaking/division of the Company on slump sale basis
Price
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Awaiting price reaction for this filing.
Switching Technologies Gunther's board has signed a binding term sheet to sell its entire business undertaking (100% of turnover) to Canolli Manufacturing Private Limited on a slump sale basis for a lump sum of INR 4.20 crores. The independent valuation arrived at INR 4.18 crores. The company is in deep financial distress — net worth is fully eroded (negative INR 12.81 crores), accumulated losses stand at INR 15.26 crores, and auditors have flagged going concern uncertainty. The transaction is with a related party (the purchaser's shareholder Mr. Joseph Romana is also a shareholder of promoter Gunther America Inc.), but is being done at arm's length. Completion is expected in about 3 months, subject to shareholder approval via EGM in October 2025 and regulatory clearances. Proceeds will primarily be used to repay obligations and improve liquidity.
This is effectively a full exit from operating business — shareholders will be left holding a shell company after the sale. While the deal addresses liquidity crisis, the sale price (~4.2 crores) versus negative net worth means existing equity holders are unlikely to receive any meaningful value. Investors should watch the EGM outcome and any subsequent plans for the residual entity.