The shares of one of the leading Bulk tea producers of India gained 3 percent after it announced that it is going to sell its vietnam subsidiary for a consideration of USD 2.15 million.
At 1:35 p.m the shares of Mcleod Russel India were trading at Rs. 18.90 up 3.28 percent from its previous day close price and its market capitalization is Rs. 198 Crores.
As per the company’s filing, Borelli Tea Holdings Limited (BTHL) a wholly owned subsidiary of McLeod Russel India Limited to sell 100 percent of the Capital Contribution in Phu Ben Tea Company Limited(PBTCL), which is a Step down subsidiary of the company, to TLK Agriculture Joint Stock Company for a consideration of USD 2.15 million.
After completion of the sale, PBTCL will cease to be the subsidiary of BTHL and step-down subsidiary of the Company.
In addition to this, as per the reports, The sale of PBTCL is part of McLeod Russel’s strategy to focus on its core business in India, which has been facing financial challenges in the recent year and selling non-core assets. In August the company had agreed to sell 15 tea estates in Assam to electrode paste maker Carbon Resources for around Rs. 700 Crores in a deal that will help it pare debt.
The company’s revenue grew 1.01 percent from Rs. 1,355.83 Crores in FY22 to Rs. 1,369.57 Crores in FY23, accompanied by increasing losses of Rs. 180.92 to Rs. 1,056.51.
According to the latest shareholding data available for the September 2023 quarter, the company’s Promoters hold 6.25 percent stake, Domestic Institutional Investors hold 1.34 percent and the Foreign Institutional Investors hold 0.00 percent.
McLeod Russel India is engaged in the business of cultivating and selling of tea in domestic as well as international markets.
Written by: Bharath K.S
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