Facor Alloys Executes ₹47.15 Crore Asset Sale Agreement Amid Financial Restructuring

Facor Alloys Limited , a prominent player in the alloy manufacturing sector, has taken significant steps to address its financial challenges and restructure its operations. The company recently executed an Asset Transfer Agreement with Rawmat Mining and Minerals, marking a pivotal moment in its strategic financial management.

Asset Sale Agreement

Facor Alloys has entered into an Asset Transfer Agreement with Rawmat Mining and Minerals for the sale of assets located at its Shreeramnagar facility in Vizianagaram District, Andhra Pradesh. The agreement, executed on August 2, 2025, will see Facor Alloys receive ₹47.15 crore from the transaction. This move is primarily aimed at meeting pressing and unavoidable financial liabilities faced by the company.

Key Details of the Transaction

• Buyer: Rawmat Mining and Minerals, a partnership firm specializing in mine site development and metallic mineral processing operations.
• Assets Involved: The sale encompasses assets situated at Facor Alloys' premises in Shreeramnagar, Vizianagaram District, Andhra Pradesh.
• Transaction Value: ₹47.15 crore
• Expected Completion: Within one year from the contract award date
• Shareholder Approval: Obtained through postal ballot under Section 180 of the Companies Act, 2013

It's worth noting that the manufacturing facilities at the Shreeramnagar plant have been non-operational since October 31, 2023, which factored into the company's decision to divest these assets.

Regulatory Compliance and Transparency

The company has ensured full compliance with regulatory requirements, including:

• Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
• Shareholder approval obtained on July 9, 2025
• Confirmation that the transaction does not constitute a related party transaction

Recent Arbitration Award

In a separate development, Facor Alloys received a favorable arbitration award on July 31, 2025, in a dispute with Rajadhiraj Tirupani Vinayak Natraj Pvt. Ltd. The award includes:

• ₹18.87 crore towards conversion charges
• ₹37.77 lakh towards invoices
• Outstanding electricity charges
• 9% per annum interest on the above amounts from the due date (around October 2022)

The arbitration also required Facor Alloys to return certain raw materials and finished products to Rajadhiraj Tirupani Vinayak Natraj Pvt. Ltd. and awarded ₹2.17 crore to be adjusted against the due amount.

Conclusion

These recent developments highlight Facor Alloys' proactive approach to addressing its financial challenges. The asset sale agreement and the favorable arbitration outcome are expected to significantly improve the company's financial position, potentially paving the way for a stronger operational focus in the future.