Novelix signs lease with promoter for Telangana algae facility
Novelix Pharmaceuticals Ltd signed a five-year lease with promoter Mr. Gnana Prakash Gattu for 37 guntas of land in Telangana to set up microalgae facilities. The deal, effective August 19, 2026, carries a monthly rent of ₹5,000 plus taxes with a 5% escalation every three years, disclosed under SEBI Regulation 30.
*this image is generated using AI for illustrative purposes only.
Novelix Pharmaceuticals Ltd has entered into a land lease agreement to expand its operational footprint into microalgae cultivation. The company executed the lease deed on August 19, 2026, with Mr. Gnana Prakash Gattu, a non-executive director and member of the promoter group, to develop facilities and install glass reactor systems.
The transaction involves leasing approximately 0.925 acres (37 guntas) of land located at Survey No. 917/6A, Markook Village, near Gajwel in Siddipet District, Telangana. The lease term is set for five years, commencing from August 19, 2026. This move aligns with the company’s strategic initiative to diversify its production capabilities through specialized biological cultivation methods.
Transaction Details
The lease structure includes specific financial terms and escalation clauses designed to manage long-term occupancy costs. The arrangement is classified as a related-party transaction but was conducted on an arm’s length basis, as confirmed by the company’s disclosure under SEBI Listing Regulations.
| Term | Detail |
|---|---|
| Lessor | Mr. Gnana Prakash Gattu |
| Land Area | 37 Guntas (Approx. 0.925 Acres) |
| Location | Markook Village, Near Gajwel, Siddipet District, Telangana |
| Lease Duration | 5 years |
| Start Date | August 19, 2026 |
| Monthly Rent | ₹5,000 plus taxes |
| Escalation | 5% increase every three years |
Regulatory Disclosure
The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company cited SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, as the regulatory framework for this intimation. Venkateshwarlu Pulluru, Whole-time Director of Novelix Pharmaceuticals Ltd, signed the disclosure on August 20, 2026.
What the Numbers Show
The fixed monthly rent of ₹5,000 represents a minimal direct cash outflow for the initial phase of the project. With an escalation clause of only 5% every three years, the cost structure remains highly predictable over the five-year tenure. This low-cost entry point allows the company to test the viability of microalgae cultivation and glass reactor installations without significant upfront capital expenditure on land acquisition, shifting the risk profile towards operational execution rather than asset ownership.
Historical Stock Returns for Trimurthi
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.12% | +4.81% | +15.18% | +21.51% | +93.67% | +1,002.31% |
What specific microalgae-derived products is Novelix Pharmaceuticals targeting for commercialization using the new glass reactor systems?
How does this expansion into biological cultivation align with the company's broader R&D pipeline and expected revenue contribution over the next 3-5 years?
Given the related-party nature of the lease, how will investors assess potential conflicts of interest or valuation fairness in future similar transactions?
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