Zuari Agro Chemicals Limited has informed the Exchange about General Updates

Core Business DivestedStrategic Transactions View source PDF Explain this filing

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Price reactionminutes from the announcement price · days from the prior close

-2.5%Reaction day

₹369.15

prior close

₹360.75

announcement price

In-mkt

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Nifty Microcap 250market · in no size index; the smallest one is used-0.8%-1.6% vs market

Fertilizers peers, median of 19sector-1.0%-1.5% vs sector

On the reaction day the stock moved 1.6 pts less than Nifty Microcap 250 and 1.5 pts less than its Fertilizers peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

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UpDownMarket · Nifty Microcap 250Sector · Fertilizers peers, median of 19Pending

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AI summary

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.

Likely market impact

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.