Mid East Portfolio Management526251New partnership deal

MOU with Cher Lifestyle to explore strategic association and proposed funding of up to Rs. 5 crore

Mid East Portfolio Management Ltd has entered into a Memorandum of Understanding (MOU) dated 19th October, 2026 with Cher Lifestyle Private Limited.

By ScoutQuest · Mon 19 Oct 2026, 4:46 PM IST · 3 min read

Proposed Funding Arrangement: up to ₹5 Crore
Intended Use of Funds: three additional branches of Cher Lifestyle in different cities
MOU Date: 19th October, 2026

Proposed association with Cher Lifestyle

The MOU is dated 19th October, 2026 and was executed at Ahmedabad, Gujarat between Mid East Portfolio Management Ltd and Cher Lifestyle Private Limited.
It sets out a framework to evaluate a proposed strategic association for Cher's business expansion and a proposed funding arrangement.
Cher has indicated an initial funding requirement of approximately ₹5,00,00,000 (Rupees Five Crore only) for establishing three additional branches in three different cities.

What the MOU covers

The scope includes financial support for setting up three additional CHER branches, evaluation of CHER's business model, financial projections, capital requirements and growth opportunities, and identification of a suitable funding structure.
It also covers strategic guidance, business development support, financial planning and monitoring of the expansion programme.
Possible board representation is to be considered: at least one nominee or representative director of each Party on the Board of the other Party, to the extent commercially agreed and legally permissible.

How the funding may be arranged

Fresh issue of equity shares or other permitted securities by MIDEAST, borrowings or other permissible sources available to MIDEAST.
Equity investment, loan or other permissible funding directly into CHER.
Convertible debt, optionally or compulsorily convertible instruments, or any other legally permissible structure.
A combination of the above, as mutually agreed.

What the update makes clear

The MOU records a preliminary understanding and does not constitute an unconditional commitment by the Company to provide or arrange the proposed funding.
The reference to ₹5 crore is the proposed funding requirement and contemplated arrangement; it is not an unconditional commitment by MIDEAST to disburse the entire amount or any part of it.
MIDEAST shall not be required to arrange or disburse any funds unless the applicable conditions precedent have been fulfilled or waived in writing.
Final amount, timing, source, mode and terms are to be decided after due diligence, assessment of financial feasibility, approval by competent authorities of both companies, and execution of definitive agreements.

Intended use of funds

Establishment and fit-out of three additional branches, lease deposits, rental advances, interiors, furniture, fixtures and equipment.
Recruitment, training, technology, marketing and pre-operative expenses for the new branches, plus initial working capital and connected business expenses.
CHER is to submit a branch-wise project report, financial projections, implementation schedule and estimated capital expenditure, and provide utilisation statements; funds are not to be diverted for unrelated purposes.

Conversion and diligence

Any loan or eligible funding may be converted, wholly or partly, into equity shares or other permissible securities only if the Parties mutually agree, based on an independently determined valuation.
Until agreed, a loan does not automatically give equity ownership, voting rights or board nomination rights.
Before finalising any funding, MIDEAST is entitled to conduct due diligence covering corporate records, audited financials, borrowings and guarantees, litigation, shareholding and related-party arrangements.
Material misrepresentation or adverse findings may lead to revised terms, suspension of discussions or termination of the MOU.

The Company has stated that its obligations under the MOU do not constitute a guarantee of funding, a commitment to raise capital, or an obligation to obtain third-party finance. Conversion, valuation, interest, tenure and repayment terms are to be recorded separately in definitive agreements.