Phaarmasia Limited , a pharmaceutical company based in Hyderabad, has taken a significant step towards restructuring its assets. The company's Board of Directors has approved the sale of land and building located at Plot Nos. 16A and 16B, Phase III, IDA Jeedimetla, Hyderabad, following shareholder approval obtained through a postal ballot.

Key Developments

1. Shareholder Approval: The company conducted a postal ballot to seek shareholder consent for the sale of the property. The resolution was passed with a substantial majority, demonstrating strong shareholder support for the decision.

2. Board Meeting Details: The board meeting was held on October 13, through audio-video means, highlighting the company's adoption of modern communication technologies for corporate governance.

3. Authorization for Sale Agreement: The Board has authorized Mr. Naga Bhaskarrao Yallapragada, Whole-time Director, and Mr. Nev Prasada Rao, Chief Financial Officer, to execute the sale agreement and related documents on behalf of the company.

4. Execution of Sale Deed: Mr. Maneesh Sapte, Director, has been authorized to execute and register the sale deed before the Sub-Registrar, ensuring proper legal compliance in the property transaction.

Voting Results

The company provided detailed voting results for the resolution to approve the sale of land and building:

The voting results indicate overwhelming support for the resolution, with 99.23% of the total votes cast in favor of the property sale.

Implications

This decision to sell the Hyderabad property, which constitutes a substantial undertaking of the company, could have significant implications for Phaarmasia Limited's financial structure and future operations. While the specific reasons for the sale have not been disclosed, such moves are often associated with efforts to optimize asset utilization, reduce debt, or reallocate resources for strategic initiatives.

Investors and stakeholders will likely be watching closely to see how Phaarmasia Limited utilizes the proceeds from this sale and what impact it may have on the company's future performance and strategic direction in the pharmaceutical sector.

As the pharmaceutical industry continues to evolve, companies like Phaarmasia Limited must make strategic decisions to remain competitive and create value for shareholders. This property sale appears to be a step in that direction, backed by strong shareholder support.

Phaarmasia Limited has initiated a postal ballot process to seek shareholder approval for the sale of its land and building located in Hyderabad. The company plans to sell the property for a minimum consideration of ₹25.00 crores, as part of its strategy to optimize its asset portfolio and strengthen its financial position.

Key Details of the Proposed Sale

• Property: Land and building at Plot Nos. 16A and 16B, Phase III, IDA Jeedimetla, Hyderabad, Telangana
• Buyers: Mr. Mavuluri Shyam Prasad, Mrs. Mavuluri Raga Sudha, and/or M/s MSP LAB INSTRUMENTS PRIVATE LIMITED
• Minimum Consideration: ₹25.00 crores, subject to adjustments based on valuation reports
• Expected Completion: By December 31, 2025

Postal Ballot and E-voting Process

The company has initiated a postal ballot process to seek shareholder approval for the sale. Key dates for the e-voting process are:

Phaarmasia Limited has engaged Central Depository Services Limited (CDSL) to provide e-voting facilities to its shareholders.

Rationale for the Sale

The proposed sale is aimed at optimizing the company's asset portfolio by divesting a non-core asset. The proceeds from the sale will be utilized to:

1. Strengthen the company's balance sheet
2. Meet general corporate requirements
3. Fund capital expenditure
4. Address working capital needs

Shareholder Approval and Legal Compliance

The sale requires approval through a special resolution under Section 180(1)(a) of the Companies Act, 2013, and other applicable SEBI regulations. The transaction is being conducted at arm's length, and the buyers are not related parties as defined under the Companies Act, 2013 or SEBI regulations.

Board Recommendation

The Board of Directors considers this transaction to be in the best interest of the company and its shareholders and recommends the resolution for approval as a Special Resolution.

Shareholders are advised to carefully review the postal ballot notice and cast their votes through the e-voting system provided by CDSL. The results of the postal ballot will be announced on or before October 14, 2025, and will be available on the company's website and stock exchange platforms.