Banaras Beads Limited , a prominent player in the beads industry, has made a significant move towards expansion by acquiring a substantial property in Varanasi. The company recently executed a purchase deed for a 1670 square meter plot of land at Village Karnadandi, Varanasi, from the Varanasi Development Authority (VDA).

Property Acquisition Details

The total consideration for this strategic acquisition amounts to Rs 6.73 crore. This move aligns with the company's future expansion plans, as the newly acquired land is situated in close proximity to Banaras Beads' existing property.

Financing the Expansion

To facilitate this purchase and support its growth plans, Banaras Beads has secured a loan from HDFC Bank. The loan details are as follows:

The company has mortgaged the newly purchased property in favor of HDFC Bank as security for the loan.

Strategic Implications

This acquisition is part of Banaras Beads Limited's broader strategy for future expansion. The company plans to utilize the land for warehouse development, which is expected to enhance its operational capabilities and support growth initiatives.

Management's Perspective

While specific comments from the management were not provided, the strategic location of the new property—near the company's existing facilities—suggests a well-thought-out expansion plan. This move is likely to streamline operations and potentially improve logistics for Banaras Beads Limited.

Market Response

Following the announcement of this significant property acquisition, there was notable movement in the company's share price. In response to a query from the BSE regarding this price movement, Banaras Beads Limited clarified that apart from this property purchase and the associated loan agreement, there were no other material events or information that could explain the significant price movement.

Conclusion

Banaras Beads Limited's latest property acquisition in Varanasi marks a significant step in the company's expansion strategy. As the company moves forward with its plans to develop the newly acquired land, stakeholders will be keen to observe how this investment translates into operational improvements and potential growth for the beads manufacturer.

Banaras Beads Limited , a company known for its bead manufacturing and exports, has made a significant move in expanding its physical assets. The company has successfully acquired a 1680 square meter property in Village Karnadandi, Varanasi, through an open bid process conducted by the Varanasi Development Authority (VDA).

Property Acquisition Details

The property, purchased for Rs. 6.77 crore, is strategically located near the company's existing land. This acquisition is part of Banaras Beads Limited's future expansion plans and will be utilized for warehouse development.

Financing the Purchase

To fund this acquisition and subsequent development, Banaras Beads Limited has secured a loan from HDFC Bank. The key details of the financing are as follows:

Allocation of Funds

• Rs. 5,28,90,000 for land purchase
• Rs. 2,27,10,000 for construction

Current Status

• HDFC Bank has disbursed Rs. 5,28,90,000 for the land purchase.
• The full payment for the property has been made to the Varanasi Development Authority.
• The purchased property will be mortgaged in favor of HDFC Bank.
• The sale deed is pending execution, expected to be completed in due course.

Strategic Implications

This acquisition represents a significant step in Banaras Beads Limited's growth strategy. The new property's proximity to the company's existing land suggests a consolidation of its operational footprint in Varanasi. The planned warehouse development indicates the company's focus on enhancing its logistics and storage capabilities, which could potentially improve its operational efficiency and support future growth initiatives.

As Banaras Beads Limited moves forward with this expansion, stakeholders will likely be keen to observe how this investment translates into improved operational capacity and potential business growth in the coming years.