Galaxy Agrico Exports 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

Board Resolution for Property Purchase

In the latest development, the Board of Directors in their meeting held on December 15, 2025, passed a resolution authorizing the company to proceed with property purchase for business expansion using proceeds from the slump sale. The Board has taken note that upon successful completion of the slump sale, the company will receive consideration amount of ₹9.25 crore.

Authorization and Compliance

The Board has authorized Mr. Abhay Vasantrao Galgate (DIN 09596308), Director of the company, to negotiate, finalize, sign, execute and deliver all documents relating to the slump sale transaction, receipt of consideration, and property purchase. The authorization extends to execution of sale deed, MOU, registration documents and related property papers.

Additionally, Mr. Manoj H Shah, Whole-time Director (DIN 02173383), has been authorized to certify copies of the resolution and submit the same to any authority.

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.

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.

Regulatory Compliance

The Board has resolved that upon completion of the slump sale transaction and receipt of funds, the company shall inform BSE Limited and make necessary disclosures under applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and any other applicable regulation. The sale was previously approved by shareholders at the Annual General Meeting held on September 29, 2025.

Galaxy Agrico Exports Ltd. has taken a significant step towards enhancing transparency and investor protection for its forthcoming Rights Issue. The company's Board of Directors, in a meeting held on December 3, 2025, approved several key measures to ensure proper oversight and utilization of the issue proceeds.

Appointment of Monitoring Agency

Despite the proposed Rights Issue size being below ₹50 crores, Galaxy Agrico Exports has decided to appoint a SEBI-registered Credit Rating Agency as the Monitoring Agency. This agency will be responsible for overseeing the utilization of proceeds from the Rights Issue, demonstrating the company's commitment to transparency.

Key Decisions

Utilization of Proceeds

The Board has emphasized that the entire net proceeds from the Rights Issue will be utilized solely for the purposes stated under the Objects of the Issue. To further reinforce this commitment, the Board has authorized the Chief Financial Officer (CFO) and Company Secretary to issue certificates confirming the proper utilization of funds.

Certification Process

The CFO and Company Secretary have been empowered to submit certificates to BSE Ltd., confirming that the Rights Issue proceeds will be strictly used in line with the objectives stated in the Draft Letter of Offer. This measure adds an additional layer of assurance for investors regarding the appropriate use of funds.

Implications for Investors

These decisions by Galaxy Agrico Exports reflect a proactive approach to corporate governance and investor protection. By voluntarily appointing a Monitoring Agency and implementing a certification process, the company is demonstrating its commitment to transparency, which could potentially boost investor confidence in the upcoming Rights Issue.

Investors considering participation in the Rights Issue may view these measures positively, as they provide additional safeguards and oversight for the utilization of issue proceeds.

As the Rights Issue progresses, shareholders and potential investors should stay tuned for further updates, including the release of the Draft Letter of Offer, which will contain detailed information about the issue objectives and terms.