Milkfood Limited has completed the formal dissolution of its wholly owned subsidiary, with MFL Trading Private Limited being officially struck off from the Register of Companies. The development marks the conclusion of a corporate restructuring process that began several months ago.

Striking Off Process Completed

The Registrar of Companies has approved the striking off application for MFL Trading Private Limited through an official communication dated January 20, 2026. This approval follows the subsidiary's initial application filing on October 15, 2025, when the company submitted Form STK-2 to initiate the striking off process.

Regulatory Compliance

Milkfood Limited has maintained transparency throughout the process by providing timely updates to stakeholders. The company initially informed the BSE Limited about the striking off application on October 15, 2025, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The latest communication to BSE Limited confirms the successful completion of the striking off process, ensuring all regulatory disclosure requirements are met. Company Secretary Rakesh Kumar Thakur signed the official intimation letter, maintaining proper corporate governance protocols throughout the dissolution process.

Corporate Structure Impact

With MFL Trading Private Limited now formally struck off from the Register of Companies, Milkfood Limited has streamlined its corporate structure by removing the inactive subsidiary entity. The striking off represents a clean closure of the subsidiary's legal existence, eliminating any ongoing compliance obligations associated with maintaining the dormant entity.

The completion of this process allows Milkfood Limited to focus its resources and management attention on its core business operations while maintaining a simplified corporate structure.

Milkfood Limited has announced the execution of an Asset Purchase Agreement for the sale of its property/unit located at Village Agwanpur, Moradabad, Uttar Pradesh, for a total consideration of ₹130.00 crores. The agreement was signed on January 16, 2026, marking a significant asset divestment for the dairy products company.

Transaction Details

The comprehensive sale package includes substantial assets across the Moradabad facility:

Buyer Information and Transaction Structure

The purchaser, Bareilly Dairies Limited, is a company incorporated under the Companies Act, 2013, with its registered office at Ismailpur, Aliganj, Aonla, Bareilly, Uttar Pradesh. The company has confirmed that this buyer is not related to the promoters, promoter group, or group companies, ensuring the transaction remains at arm's length.

Key transaction characteristics include:

• No related party transaction implications
• Independent buyer with no promoter connections
• No direct or indirect interest from promoters, directors, or key managerial persons
• Transaction outside any scheme of arrangement

Financial Impact and Revenue Contribution

The Moradabad property has been a significant revenue contributor for Milkfood Limited. During FY 2024-25, the facility generated substantial business value:

Utilization of Sale Proceeds

Milkfood Limited has outlined a clear strategy for deploying the ₹130.00 crore proceeds from this asset sale. The net sales proceeds will be strategically allocated toward two primary objectives:

• Debt Reduction: Reducing existing borrowings to strengthen the company's financial position
• Business Development: Investing in growth initiatives and operational expansion

This dual approach reflects the company's commitment to both financial stability and future growth prospects.

Regulatory Compliance

The transaction has been disclosed in full compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided comprehensive details as required under Schedule III of the Listing Regulations and SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, ensuring complete transparency for stakeholders and regulatory authorities.