NewsCorporate ActionsShri Dinesh Mills to Sell Entire Stake in Loss-Making Subsidiary Dinesh RemediesShri Dinesh Mills to Sell Entire Stake in Loss-Making Subsidiary Dinesh Remedies
Shri Dinesh Mills Limited has executed a Share Purchase Agreement to sell its entire stake in its loss-making subsidiary, Dinesh Remedies Limited, for a total consideration of Rs. 5.43 crores. The sale includes 1,30,98,095 equity shares and 20,96,876 preference shares. The transaction is expected to complete by September 15, 2025. Despite contributing 30.09% to consolidated turnover, Dinesh Remedies has been incurring persistent losses. This divestment aims to streamline operations and focus on core business activities.
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Shri Dinesh Mills Limited , a prominent textile manufacturer, has taken a significant step to streamline its operations by divesting its entire stake in its loss-making subsidiary, Dinesh Remedies Limited. The company executed a Share Purchase Agreement on August 27, 2025, marking a strategic move to improve its financial position.
Key Details of the Transaction
- Buyers: Mr. Dixit Rashmikantbhai Patel and his affiliates, Mr. Bharat Ratilal Patel and Mr. Bhailalbhai Patel
- Total Consideration:
- Rs. 3.14 crores for equity shares
- Rs. 2.29 crores for preference shares
- Completion Date: Expected by September 15, 2025
Financial Impact
The divestment comes in the wake of persistent losses incurred by Dinesh Remedies Limited. Despite contributing significantly to the consolidated turnover, the subsidiary has been a financial burden on Shri Dinesh Mills. Key financial metrics include:
| Metric | Percentage | Amount |
|---|---|---|
| Contribution to Consolidated Turnover | 30.09% | Rs. 34.29 crores |
| Contribution to Consolidated Net Worth | 5.94% | Rs. 11.55 crores |
Strategic Rationale
Shri Dinesh Mills cited the following reasons for the divestment:
- Persistent losses incurred by Dinesh Remedies
- No revenue generation from this investment
- Streamlining operations to focus on core business activities
Corporate Governance and Compliance
The disposal of Dinesh Remedies has been conducted in compliance with regulatory requirements:
- Shareholders approved the disposal through a special resolution via postal ballot on December 14, 2024
- The transaction does not fall under the ambit of related party transactions
- Upon completion, Dinesh Remedies will cease to be a material unlisted subsidiary of Shri Dinesh Mills
Shareholding Details
The Share Purchase Agreement covers the following:
- 1,30,98,095 equity shares of Rs. 10 each
- 20,96,876 4% Optionally Cumulative Convertible Preference Shares (OCCPS) of Rs. 10 each
This strategic move by Shri Dinesh Mills Limited is expected to have a positive impact on its financial health, allowing the company to focus on its core textile business and potentially improve shareholder value in the long term.
Historical Stock Returns for Shri Dinesh Mills
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.72% | +0.42% | -1.60% | +2.02% | -38.84% | +150.33% |
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