Gujarat Poly Avx Electronics Limited (GPEL) has announced significant strategic moves, including the sale of a key property and an increase in investment limits, as approved by its board of directors.

Property Sale

The company's board has given the green light for the sale of leasehold rights to a land plot and ownership rights to a factory building located at Plot No. B-18, Gandhinagar Electronic Estate. The property, measuring 12,022.40 square metres, will be sold to Tirex Transmission Private Limited for ₹29.00 crore.

This property has been crucial to GPEL's operations, generating a turnover of ₹1,779.24 lakh, which represents 100% of the company's revenue. However, GPEL has assured that it has made arrangements to relocate its operations, stating that the sale is not expected to adversely affect the company's turnover.

Increased Investment Limits

In addition to the property sale, the board has approved an increase in the limits for granting loans, making investments, giving guarantees, or providing securities. The new limit has been raised from ₹35.00 crore to ₹60.00 crore, potentially allowing for greater financial flexibility and investment opportunities.

Shareholder Approval and EGM

To seek shareholder approval for these significant decisions, GPEL has scheduled an Extraordinary General Meeting (EGM) for September 1, 2025. The meeting will be held through video conference or other audio-visual means.

Transitional Arrangements

As part of the sale agreement, GPEL will execute a letter agreement with Tirex Transmission Private Limited. This arrangement will allow GPEL to continue using a specified area of the property as its registered office during a transitional period, ensuring business continuity while the company relocates its operations.

Arms-Length Transaction

It's worth noting that Tirex Transmission Private Limited is not related to GPEL's promoter group. The company has emphasized that the transaction will be conducted on an arms-length basis, adhering to regulatory requirements and best practices in corporate governance.

Financial Performance

In its recent financial results, GPEL reported:

The company's financial performance shows a significant improvement in Q1 FY2026 compared to the previous quarter and the same quarter last year, with a substantial increase in both income and profit.

These strategic moves, including the property sale and increased investment limits, appear to be part of GPEL's efforts to optimize its assets and enhance its financial position. Shareholders will have the opportunity to vote on these proposals at the upcoming EGM in September.

Gujarat Poly Avx Electronics Limited (GPEL) has announced a series of significant developments, including strong quarterly results and a major property transaction, signaling a transformative period for the company.

Impressive Financial Performance

For the quarter ended June 30, GPEL reported a substantial increase in net profit, reaching Rs. 282.93 lakhs compared to Rs. 50.65 lakhs in the same quarter of the previous year. This remarkable growth represents a 458.40% year-over-year increase. The company's total income also saw a significant rise, climbing to Rs. 723.40 lakhs from Rs. 507.55 lakhs in the corresponding quarter last year, marking a 42.53% increase.

Strategic Property Sale

In a move that could reshape its operations, GPEL's board has approved the sale of leasehold rights to a plot of land and ownership rights to a factory building located at Gandhinagar Electronic Estate. The property will be sold to Tirex Transmission Private Limited for a consideration of Rs. 29.00 crores. This transaction is subject to shareholder approval and necessary statutory clearances.

Operational Continuity and Transition

To ensure smooth business operations during the transition, GPEL has made arrangements to relocate its operations. The company has stated that this move is not expected to adversely affect its turnover. Additionally, GPEL has reached an agreement with Tirex for the continued use of the registered office premises during the transitional period.

Enhanced Financial Flexibility

The board has also approved an increase in the company's lending and investment limits from Rs. 35.00 crores to Rs. 60.00 crores. This decision aims to provide GPEL with greater financial flexibility for future growth initiatives.

Shareholder Approval and EGM

An Extraordinary General Meeting (EGM) has been scheduled for September 1 to seek shareholder approval for the property sale and the increase in lending and investment limits. The meeting will be held through video conferencing.

Financial Highlights

Gujarat Poly Avx Electronics' strong financial performance and strategic initiatives demonstrate the company's commitment to growth and operational optimization. As the company moves forward with its property sale and relocation plans, investors and stakeholders will be keenly watching how these changes impact GPEL's future performance and market position.