Alfa Transformers Ltd has approved the slump sale of its Vadodara unit to KASST Industries Limited for a cash consideration of ₹18.00 Cr to address substantial operational losses and working capital constraints. The Board of Directors approved the transfer of the unit as a going concern on June 19, 2026, subject to shareholder approval under the Companies Act, 2013 and SEBI (LODR) Regulations, 2015. The transaction is expected to be completed by September 18, 2026.

The Vadodara unit reported revenue of ₹1049.30 Lakhs for the financial year ended March 31, 2026, against the company's total revenue of ₹3,274.23 Lakhs. However, the unit faced significant financial stress, recording a loss of ₹272.48 Lakhs for the year and accumulating total losses of ₹1581.15 Lakhs as of March 31, 2026. The company stated that the unit requires immediate working capital funding to sustain operations or face liquidation damages due to delays in transformer supply.

KASST Industries Limited, an unlisted Indian company incorporated during FY 2026, is the buyer for the proposed manufacturing and marketing business. The company confirmed that the buyer does not belong to the promoter group or group companies of Alfa Transformers, and the transaction is not a related party transaction conducted at arm's length.

The Business Transfer Agreement was executed on June 19, 2026, following the board's approval. The slump sale is not being undertaken through a Scheme of Arrangement and will comply with Regulation 37A of SEBI (LODR) Regulations, 2015. The company noted that the proposed sale will render the entity debt free, though there will be no change in the shareholding pattern of Alfa Transformers upon completion.

Financial Details of Vadodara Unit

Alfa Transformers Limited has secured a significant order worth Rs 7.14 Crores from Madhya Gujarat Vij Company Ltd for the supply of 11KV transformers. The contract, awarded under Regulation 30 of the SEBI (LODR) Regulations, 2015, involves the domestic supply of 3-Phase 100 KVA Distribution Transformers (Level-1). This order strengthens the company's order book within the power distribution sector.

The order encompasses a total quantity of 478 transformers, allocated across four DISCOMs: Madhya Gujarat Vij Company Ltd (MGVCL), Dakshin Gujarat Vij Company Ltd (DGVCL), Uttar Gujarat Vij Company Ltd (UGVCL), and Paschim Gujarat Vij Company Ltd (PGVCL). UGVCL has been designated as the nodal DISCOM for this tender. The transformers will utilize amorphous core material, adhering to specified technical standards including maximum no-load and full-load losses.

Financial and Contractual Details

The financial size of the order stands at Rs 7.14 Crores with GST. The unit end cost for each transformer is Rs 149,327.82, inclusive of GST at 18%. The pricing is subject to variation based on the IEEMA Price Variation Clause, with a base date set for November 1, 2025. The key contractual parameters are summarised below:

Execution Timeline and Conditions

The execution of the order is subject to strict timelines. The total allocated quantity must be delivered within seven months in equal monthly lots. This delivery period commences 45 days from the date of receipt of the Letter of Acceptance (LOA) from the respective DISCOMs. Individual LOAs will be issued by each DISCOM to formalize the schedule.

The company is required to submit a Performance Guarantee equivalent to 3% of the total contract value. This guarantee must be provided within 15 days of the LOA issuance to avoid cancellation of the order. Additionally, Alfa Transformers must execute an agreement within 20 days of the LOA date and secure necessary type test approvals and BIS licenses during the commencement period without affecting the delivery schedule.