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 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.