Bhagyanagar India Limited has executed a Memorandum of Understanding (MoU) with Om Sree Builders and Developers LLP for the monetisation of its land assets in Hyderabad. The transaction involves the outright sale of a portion of the company's industrial land for ₹60 crore and the joint development of the remaining area.

The Board of Directors approved the agreement on October 12, 2026. The deal targets a total property size of approximately 20,080.52 square yards located at IDA Uppal, Medchal-Malkajgiri District, Telangana. This move aims to unlock value from non-operational assets through a hybrid structure combining immediate cash inflow and future real estate participation.

Transaction Structure

The MoU outlines two distinct components for the disposal of the land:

1. Outright Sale: A parcel measuring 7,260 square yards (1.50 acres) will be sold to the Developer for a consideration of ₹60 crore. This will be formalised through an Agreement of Sale followed by a Sale Deed.
2. Joint Development: The balance area of approximately 12,820.52 square yards (2.6489 acres) will be developed under a Development Agreement-cum-Irrevocable General Power of Attorney (DAGPA). Under this arrangement, Bhagyanagar India will receive a 30% share of the saleable area, estimated at about 3 lakh square feet of developed space.

Regulatory and Compliance Details

The agreement is subject to shareholder approval, which will be initiated in due course. Definitive documents, including the DAGPA and Sale Deed, are scheduled to be executed within six months from the date of the MoU or as mutually agreed by the parties.

The developer, Om Sree Builders and Developers LLP, is not related to the promoter group or group companies. Consequently, this transaction does not qualify as a related party transaction. No special rights such as board nomination or restrictions on capital structure have been granted to the developer.

What the Numbers Show

The hybrid structure allows Bhagyanagar India to secure immediate liquidity through the ₹60 crore upfront payment while retaining exposure to potential upside via the joint development share. By selling only 36% of the total land area outright, the company preserves the majority of its asset base for higher-value realisation through development rather than a simple bulk sale.

Bhagyanagar India Limited appointed Shri Mangilal Narender Surana as an Additional Director and accepted the resignation of Executive Director Mr. Venkateswara Rao Nukala during its board meeting held on October 8, 2026. The board also noted the apportionment of cost of acquisition under the recently sanctioned Composite Scheme of Arrangement.

Surana, a Chemical Engineer with over 36 years of experience in telecom cables, metals, and solar industries, joins as a Non-Executive Non-Independent (Promoter) Director. His appointment is subject to member approval. He previously served as President of the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) and Chairman of the Federation of Indian Chambers of Commerce and Industry (FICCI). The filing disclosed that he is related to Devendra Surana, Managing Director of the company.

Mr. Nukala resigned from his position citing personal reasons, effective close of business hours on October 8, 2026. The board confirmed no other material reasons for his departure and thanked him for his contributions.

Cost Apportionment Under Scheme of Arrangement

The board took note of the cost of acquisition apportionment following the demerger of the copper undertaking into Tieramet Limited. The National Company Law Tribunal (NCLT), Hyderabad Bench, sanctioned the scheme on September 7, 2026. Statutory auditors Luharuka & Associates certified the computation under Sections 73(2)(c) and 73(2)(d) of the Income-tax Act, 2025.

What the Numbers Show

The apportionment ratio reflects the relative net worth transferred versus retained. The net book value of assets transferred to Tieramet stood at ₹17,760.18 lakhs, while the net worth of Bhagyanagar India immediately before the demerger was ₹19,874.88 lakhs. This results in shareholders carrying 89.36% of their original cost basis to the new entity, reducing the cost basis of their remaining Bhagyanagar shares to 10.64%. This significant shift indicates that the majority of the economic value and asset base associated with the copper undertaking has moved to Tieramet.