Board approves sale of entire 13.20% stake in MVK Industries to promoter for Rs. 4,55,40,000/-
Board approved selling all 3,96,000 equity shares (13.20% stake) in group company MVK Industries to promoter Gopal Sponge and Power Pvt Ltd at Rs. 115/- per share — Rs. 4,55,40,000/- total, book value plus 25% premium.
- Stake Being Sold
- 3,96,000 equity shares (13.20% stake)
- Price Per Share
- Rs. 115/- per share
- Total Consideration
- Rs. 4,55,40,000/-
- Premium to Book Value
- 25% premium
- Expected Completion Date
- October 31, 2026
What was approved
The Board, at its meeting held on September 28, 2026, approved the sale of the entire 3,96,000 equity shares held by the company in MVK Industries Private Limited, a group company. This represents a 13.20% stake in MVK.
Price and value
- Price per share: Rs. 115/-, described as book value plus 25% premium
- Total consideration: Rs. 4,55,40,000/-
- Contribution of this investment to net worth: Rs. 2,34,96,593/-, which is 0.57% of total net worth
Who is buying
The buyer is Gopal Sponge and Power Private Limited, the promoter and holding company of the listed company. Because of this relationship, the transaction is a related party transaction under the Companies Act, 2013 and SEBI LODR Regulations, and the company states it is on an arm's length basis. Necessary approvals and compliances will be undertaken.
Why
The company describes this as a non-core investment made prior to its listing which has not been generating any recurring income. The proceeds are intended to be used towards its ongoing expansion.
Timeline
The agreement for sale was entered into on September 28, 2026, and completion is expected by October 31, 2026. MVK's accounts were not consolidated with the company in the last financial year, so its turnover or income did not form part of the consolidated financial statements; the net worth contribution largely reflects other comprehensive income from fair value changes.
How investors may read it
The sale monetises a small, non-earning holding at a stated premium to book value and frees up cash for expansion. At the same time, the buyer is the promoter, so investors typically watch related party transactions for pricing and approval process.
More numbers
- Equity shares of MVK being sold3,96,000 equity shares
- Stake held in MVK Industries13.20%
- Price per equity shareRs. 115/-
- Premium over book value25%
- Total considerationRs. 4,55,40,000/-
- Contribution to net worthRs. 2,34,96,593/-
- Share of total net worth0.57%
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