Kohinoor Foods to Sell Haryana Rice Factory for ₹190 Cr Amid Debt Restructuring

1. Company Name: Kohinoor Foods Limited

2. Event Date: 21 March 2025 (Notice issued), E-voting: 23 March – 21 April 2025

3. Key Development:

   • Kohinoor Foods to sell its rice processing unit located at Murthal, Haryana for ₹190 crore.

   • Buyer: RCM Consumer Products Private Limited.

   • Sale via slump sale basis—includes tangible/intangible assets, land (brand name excluded).

4. Reason for Sale:

   • Part of One-Time Settlement (OTS) with banks after company was declared NPA in 2018.

   • Net proceeds will be used to settle outstanding debt as per bank consortium approval.

5. Shareholder Approval:

   • Shareholders to vote through e-voting (Postal Ballot) between 23 March and 21 April 2025.

6. No Impact Claimed:

   • Company asserts the sale won’t impact the “Kohinoor” rice brand.

7. Transaction Closing: Expected by end of July 2025 (subject to approvals).

8. No Shareholding Change: Shareholding structure remains unchanged post-transaction.

Effect on Share Market:

• Positive Short-Term Impact:
  Market may respond positively due to debt resolution and potential financial recovery.

• Long-Term Impact Depends On:

  • How effectively Kohinoor Foods utilizes funds from the sale.

  • Future strategy post-divestment, especially brand monetization and growth.

• Share Price Trend:
  Potential for a short-term rally; volatility likely near transaction closure and result announcement (April 23, 2025).

Company Overview:

• Incorporated: 1989

• Headquarters: Faridabad, Haryana, India

• Business: Processing and export of Basmati rice and other food products.

• Brand: “Kohinoor” – a premium Basmati rice brand with strong global presence.

• Stock Codes: NSE: KOHINOOR | BSE: 512559

Kohinoor Foods to Sell Murthal Rice Factory for ₹190 Crores to RCM Consumer Products

Kohinoor Foods Limited has announced a significant strategic move by seeking shareholder approval to sell its rice factory located at Murthal, Haryana, to RCM Consumer Products Private Limited for ₹190 crores. The sale will be executed on a slump sale basis as a going concern, excluding the brand name “Kohinoor”. This transaction forms part of Kohinoor’s One Time Settlement (OTS) plan with lenders, following its classification as a Non-Performing Asset (NPA) in 2018.

The e-voting process for shareholder approval will be conducted from March 23 to April 21, 2025. The transaction is expected to close by July 2025, pending all regulatory and shareholder approvals.

Importantly, the sale will not affect Kohinoor’s core brand or existing shareholding pattern, and is expected to bolster financial health by fulfilling obligations under the OTS agreement with banks.

Potential Market Impact:

This asset sale could be viewed positively by investors as it demonstrates the company’s commitment to restructuring and financial recovery. The stock may see increased activity and a potential uplift if shareholders support the move and if the transaction proceeds smoothly.

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