Balrampur Chini Mills, the country's second-largest sugar firm, today signed an agreement with Ganesh Explosives to sell its entire 53.96 per cent stake in its subsidiary Indo Gulf Industries Ltd (IGLL).
After the completion of the sale, the IGLL will cease to be a subsidiary of Balrampur Chini Mills.
"We wish to inform you that Balarampur Chini Mills has signed a Share Purchase Agreement (SPA) today with Ganesh Explosives Pvt Ltd to sell and transfer the entire stake held by the company in IGLL," said Balrampur Chini Mills in a regulatory filing.
As per the agreement, the company will sell its entire 51,62.470 equity shares, comprising 53.96 per cent stake in IGLL, for Rs 20,64,988, it said.
The turnover of IGLL in the previous financial year was nil, but its net worth as on March 31, 2016 was Rs 12,14,846.
Ganesh Explosives is engaged in manufacturing of high explosives as well as black gun powder.
Balrampur Chini has 11 sugar factories in Uttar Pradesh, and has an aggregate crushing capacity of 79,000 tonnes per day. It also has three distilleries.
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