The shareholders of the Company approved the sale of property of the Company.
Awaiting price reaction for this filing.
Konark Synthetic Limited has received shareholder approval via special resolution at its EGM on May 15, 2025 to sell its land and building property located at Silvassa Industrial Co-op. Society, Plot No. 25, Amli, Dist. Silvassa. The property currently contributes 98% of the company's total income and is described as underutilized. The expected sale consideration is not less than Rs. 6 crores, with completion targeted within one year. The buyer will not be from the promoter group and the transaction is not a related party deal. The company plans to use proceeds primarily to repay existing borrowings and interest obligations, thereby improving its debt-to-equity ratio and reducing finance costs, and may consider leasing back the property or another premises to continue business operations.
While the Rs. 6 crore+ proceeds will help deleverage the company and lower interest costs, the property generates 98% of total income, so the sale is a significant divestment of the company's main revenue-generating asset. Shareholders should watch for the actual sale agreement and valuation, as well as the company's plan for continued operations post-sale.