Galaxy Agrico Exports Ltd has taken a significant step towards restructuring its business operations. The company's Board of Directors has approved a draft slump sale agreement to divest its manufacturing and trading business of agricultural equipment and bearings to Forgex Rings Private Limited.

Key Details of the Transaction

Background and Rationale

Galaxy Agrico Exports' decision to sell its current business stems from profitability concerns. The company stated that its present business is not very profitable, and continuing with the same line of business is not considered viable for the company's prospects.

The sale proceeds are intended to be utilized for developing new business lines, potentially opening up more profitable avenues for the company. This move is seen as a strategic step to improve the company's net worth and facilitate future growth.

Buyer Information

Forgex Rings Private Limited, the buyer, is a non-related entity to Galaxy Agrico Exports. It was incorporated in 2024 and has its registered office in Rajkot, Gujarat. The company's corporate identity number is U28219GJ2024PTC152330.

Shareholder and Regulatory Approvals

The sale was previously approved by shareholders at the Annual General Meeting held on September 29, 2025. The transaction does not fall under related party transactions and is being conducted outside any scheme of arrangement.

Financial Impact

The business being sold contributed 100% of the company's turnover or revenue during the last financial year. This indicates a complete shift in Galaxy Agrico Exports' business focus following the completion of this transaction.

Next Steps

The company expects to enter into the final agreement within the next 15 to 20 days. As this transaction represents a significant change in Galaxy Agrico Exports' business model, investors and stakeholders will likely be watching closely for updates on the company's future business plans and strategies.

This corporate action underscores the challenges faced by some players in the agricultural equipment sector and highlights the importance of adaptability in maintaining business viability.

Galaxy Agrico Exports has executed a Business Transfer Agreement with Forgex Rings Private Limited on November 29, 2025, for the sale and transfer of its manufacturing and trading business of Agricultural Equipment and Bearings as a going concern on slump sale basis. This development follows the company's earlier announcement of a board meeting scheduled for October 27, 2025, to approve a draft Slump Sale Agreement.

Key Details of the Transaction

Understanding the Slump Sale

A slump sale is a transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to individual assets and liabilities. In this case, Galaxy Agrico Exports has agreed to transfer its entire agricultural equipment and bearings manufacturing and trading business to Forgex Rings Private Limited as a going concern.

Implications and Next Steps

The execution of this Business Transfer Agreement marks a significant milestone in Galaxy Agrico Exports' strategic restructuring. The company has moved from the planning stage to the implementation of its business transfer strategy.

This strategic move may allow Galaxy Agrico Exports to streamline its operations and focus on core competencies. However, the full impact of this transaction on the company's future operations and financial position will become clearer as more details of the agreement are disclosed.

Shareholder Approval

The member approval for this transaction was obtained through a Special Resolution passed at the Annual General Meeting held on September 29, 2025. This demonstrates that the company has followed proper corporate governance procedures in executing this business decision.

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating its commitment to transparent communication with shareholders and the market.

As this corporate action progresses, market participants may be interested in understanding the valuation of the deal and its strategic rationale, which may be revealed in subsequent communications from Galaxy Agrico Exports. Investors and stakeholders should continue to monitor further announcements from the company regarding the implementation of this agreement and its potential impact on the company's business strategy and financial outlook.