Zuari Agro Chemicals Limited has informed the Exchange about General Updates
ZUARI · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Zuari Agro Chemicals (ZACL) has approved selling its granulated single super phosphate (SSP) plant and related assets at Mahad, Maharashtra to its listed subsidiary Mangalore Chemicals & Fertilizers (MCFL) on a slump sale basis. The lump sum consideration is INR 72.75 Crores, against a net book value of INR 51.10 Crores for the Mahad unit. The Mahad plant contributed the entire turnover of ZACL (Rs. 47.80 Crores) for FY25 and represents 38% of the company's net worth. The deal is a related-party transaction (done at arm's length) and is subject to shareholder approval, with completion expected in about three months. Management says the proceeds will provide liquidity and help repay liabilities.
For ZACL shareholders, this is a significant restructuring — the company is effectively handing over its only operating business to its subsidiary. While the sale price offers a premium over book value, ZACL will be left as a largely empty shell post-deal, making future revenue and growth prospects dependent on how the INR 72.75 Crores is redeployed or distributed to shareholders.