HMA Agro Industries Limited has announced the cancellation of its proposed divestment of stake in subsidiary Laal Agro Food Private Limited, informing the stock exchanges on May 06, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The decision to withdraw from the transaction was attributed to certain issues identified in relation to the valuation and pricing aspects of the proposed deal. As a result, the Share Purchase Agreement dated May 02, 2026, shall not be acted upon and stands cancelled with immediate effect.

Background of the Proposed Transaction

The proposed divestment had been communicated to the exchanges through a series of regulatory disclosures before the cancellation was announced. The key milestones leading up to the cancellation are outlined below:

The company had entered into a Share Purchase Agreement on May 02, 2026, for the proposed divestment of its stake in Laal Agro Food Private Limited, referred to as the Target Company in the regulatory communication.

Regulatory Compliance

The update was filed in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with the SEBI Master Circular dated January 30, 2026. The intimation was signed by Nikhil Sundrani, Company Secretary and Compliance Officer (FCS No. 13843), on May 06, 2026.

Future Outlook

HMA Agro Industries has indicated that it may re-evaluate the proposed transaction at a future date, subject to necessary approvals and compliance with applicable laws. No further details regarding timelines or revised terms have been disclosed at this stage.

HMA Agro Industries has executed a Share Purchase Agreement (SPA) on May 02, 2026 to divest its entire equity stake in wholly owned subsidiary Laal Agro Food Private Limited. The transaction involves the sale of 10,000 equity shares to promoter group buyers Mr. Gulzar Ahmad and Mohammad Kamil Qureshi for a total consideration of ₹1,00,000, determined at ₹10 per equity share based on a valuation report dated April 30, 2026 from a Registered Valuer.

Transaction Details

The divestment follows the Board of Directors' approval granted on April 25, 2026. The sale is expected to be completed by May 30, 2026, subject to the fulfillment of closing conditions outlined in the SPA. Upon completion, Laal Agro Food Private Limited will cease to be a wholly owned subsidiary of the company.

Buyer Information

The Board has approved the divestment to the following identified buyers, who are part of the promoter/promoter group and classified as related parties:

Financial Position of Subsidiary

As per audited financial statements as on March 31, 2025, Laal Agro Food Private Limited reported the following:

The subsidiary is presently not engaged in active business operations and does not meet the criteria of a material subsidiary under Regulation 16(1)(c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regulatory Compliance

The transaction is being undertaken on an arm's length basis and qualifies as a related party transaction. It has been approved in accordance with Regulation 23 of the SEBI LODR Regulations. Since Laal Agro Food Private Limited is not a material subsidiary, the provisions of Regulation 24 are not applicable. The transaction does not involve any agreement impacting management or control beyond the transfer of shareholding.