Kesar Enterprises Limited has received board approval to divest its Sugar, Distillery, and Cogen Divisions located in Baheri, Bareilly, UP, through a slump sale. The transaction, valued at ₹431 crore, is to an unrelated third party, Avadh Foods and Multi Warehouse Private Limited. The company will now seek shareholder approval for this significant restructuring, with a target completion date of June 15, 2027.
Board Approves Major Business Divestment
Kesar Enterprises Limited announced that its Board of Directors, in a meeting held on September 8, 2026, approved the slump sale of its Sugar, Distillery, and Cogen Divisions. These divisions collectively form the company’s undertaking located in Baheri, District Bareilly, Uttar Pradesh. The approval was granted based on the recommendation of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Key Transaction Details
The divestment is structured as a slump sale, indicating the sale of a business undertaking as a whole. The identified undertaking comprises the company’s Sugar, Distillery, and Cogen Divisions. In the last financial year, these divisions contributed ₹304.50 crore in turnover/revenue and accounted for a net worth of -₹133.24 crore.
Buyer and Consideration
A Memorandum of Understanding (MOU) has been executed with Avadh Foods and Multi Warehouse Private Limited, a private company incorporated on March 6, 2026. This buyer is an unrelated third party. The total consideration for the sale is set at ₹431 crore, subject to the deduction of liabilities of the undertaking and other adjustments as specified in the definitive Business Transfer Agreement (BTA). The net amount receivable by Kesar Enterprises will be determined after these deductions.
Timeline and Approvals
The transaction is expected to be completed on or before the Long Stop Date, identified as June 15, 2027. This completion is contingent upon several factors, including shareholder approval via a special resolution, satisfaction of regulatory requirements, and the execution of the definitive Business Transfer Agreement. The company will proceed with seeking the necessary shareholder consent.
Source: BSE
