Future Consumer Ltd to sell business undertaking of The Nilgiri Dairy Farm Pvt Ltd to AVA Cholayil Healthcare Pvt Ltd

The Board of Directors of Future Consumer Limited have at their meeting held today i.e. 29th August, 2023, have considered and approved the sale of entire business undertaking of The Nilgiri Dairy Farm Pvt Ltd to AVA Cholayil Healthcare Pvt Ltd.

Subject to obtaining of all necessary consents and approvals including that of the Lenders and Shareholders of the Company in accordance with applicable laws and regulations and further achieving completion of conditions specified under business transfer agreement, the Transfer of entire business undertaking of 'The Nilgiri Dairy Farm Private Limited', a material wholly owned subsidiary of the Company ("NDFPL"), comprising of its franchisee operations, retail trade operations thereunder and the sourcing, processing, packaging and marketing of its dairy products, bakery products (except cookie plant), fast moving consumer goods, staples and other products, including the Intellectual Property of NDFPL (including all income accrued from the usage of such Intellectual Property), the Assets and Liabilities as well as the Continuing Employees, by way of slump sale on a going concern basis to AVA Cholayil Healthcare Private Limited ("Purchaser") for an aggregate consideration and other terms as agreed by and between the Company, NDFPL and the said Purchaser.

The aggregate Purchase Consideration expected to be received by NDFPL from the Purchaser is Rs. 67.00 Crore (Rupees Sixty seven crore only). The Purchase Consideration shall be paid to NDFPL in three tranches.

The proposed transaction is undertaken in terms of the monetization plan of the Company to generate liquidity for repayment of debts to the lenders.

Shares of Future Consumer Limited was last trading in BSE at Rs. 0.75 as compared to the previous close of Rs. 0.73. The total number of shares traded during the day was 16123448 in over 2350 trades.

The stock hit an intraday high of Rs. 0.76 and intraday low of 0.70. The net turnover during the day was Rs. 11445790.00.

Source : Equity Bulls

Keywords

FutureConsumer INE220J01025 Sale BusinessUndertaking TheNilgiriDairyFarm