KRBL Limited , a leading rice exporter and owner of the India Gate basmati rice brand, has made a significant move by acquiring properties in Panipat, Haryana, through a successful e-auction bid. The company secured the properties for ₹402.86 crore, substantially higher than the initial reserve price.

Acquisition Details

KRBL emerged as the successful bidder in an e-auction conducted by the Justice (Retd.) R.M. Lodha Committee, which was overseeing the sale of immovable properties related to the PACL Limited matter. The company received confirmation of its winning bid on October 1.

Key points of the acquisition include:

Strategic Implications

The acquisition aligns with KRBL's growth strategy. According to the company's disclosure, the properties will be utilized for one or more of the following purposes:

1. Setting up a new plant
2. Carrying out warehousing and allied activities
3. Partial monetization of the land

This move suggests KRBL is looking to expand its operational capacity or enhance its logistics infrastructure in the northern region of India, a key area for basmati rice cultivation.

Regulatory Compliance

In compliance with SEBI regulations, KRBL has provided detailed information about the transaction:

• The acquisition is not a related party transaction.
• No special rights, such as board appointments or share subscriptions, are associated with this deal.
• The transaction does not involve any loan agreements or share issuances.

Market Impact

While the immediate financial impact of this sizeable investment remains to be seen, the acquisition represents a significant expansion of KRBL's asset base. It demonstrates the company's commitment to growth and its confidence in the future of its business operations in the region.

As KRBL continues to strengthen its presence in key agricultural regions, this strategic acquisition could potentially contribute to the company's long-term growth and competitiveness in the rice industry.

KRBL Limited , a prominent player in the agri-foods sector, is set to diversify its business portfolio by venturing into real estate development. The company's shareholders have given their approval for significant changes to the Memorandum of Association, paving the way for this strategic expansion.

Shareholders Approve Alteration in Object Clause

At the 32nd Annual General Meeting (AGM), KRBL Limited's shareholders approved the alteration of the Object Clause in the company's Memorandum of Association. This modification allows KRBL and its subsidiaries to engage in "real-estate development and allied activities."

New Business Objectives

The key change includes the insertion of a new sub-clause under Clause III(A) of the Memorandum of Association. This addition permits KRBL to:

• Acquire, develop, construct, lease, manage, and monetize immovable property
• Pursue real estate development independently or in collaboration with specialist partners

Strategic Rationale

KRBL's management views this expansion as a complementary growth engine to its established agri-foods business. The company aims to enhance long-term shareholder returns through this diversification strategy.

Realignment of Existing Clauses

In addition to the new business objective, KRBL has realigned its existing object clauses to comply with the Companies Act, 2013 format. This includes:

• Restructuring titles
• Adding new sub-clauses
• Deleting the existing 'Other objects' section

Other Key Developments

The AGM also saw the approval of several other important resolutions:

1. Appointment of M/s. DMK Associates as Secretarial Auditors for a five-year term
2. Declaration of a final dividend of ₹3.50 per equity share
3. Reappointment of Mr. Arun Kumar Gupta as a director
4. Appointment of Mr. Desh Raj Dogra as an Independent Non-Executive Director

Conclusion

KRBL Limited's move into real estate development marks a significant shift in its business strategy. While maintaining its strong presence in the agri-foods sector, the company is positioning itself for diversified growth opportunities in the real estate market. Shareholders' approval of these changes reflects their confidence in the company's strategic direction and potential for enhanced returns in the future.

The company has also appointed M/s. AZB & Partners as an independent law firm to review certain observations and submit a report to the relevant Board Committee, demonstrating KRBL's commitment to transparency and corporate governance.