Sri Adhikari Bros. Tele Network Limited (SABTNL) has finalized the sale of its entire 35.68% stake in Westwind Realtors Private Limited (WRPL) to Sri Adhikari Brothers Assets Holding Private Limited (SABAHPL) for ₹18.20 crore. The transaction, which was completed on August 22, marks a significant move for the company as it divests its interests in the real estate subsidiary.

Transaction Details

The sale involved the transfer of premises shares and parking spaces across three floors of the Adhikari Chambers Building in Mumbai:

Corporate Governance and Approvals

The transaction, classified as a related party transaction, received necessary approvals through a postal ballot held on May 27, with results announced on June 27. This adherence to corporate governance protocols underscores SABTNL's commitment to transparency in its operations.

Impact on Corporate Structure

As a result of this divestment, Westwind Realtors Private Limited has ceased to be a subsidiary of SABTNL effective August 22. The company's shareholding in WRPL has now become 'Nil'.

Financial Implications

It's noteworthy that WRPL contributed nil turnover or revenue during the last financial year, as disclosed in the company's regulatory filings. This suggests that the sale may have minimal impact on SABTNL's ongoing operations and financial performance.

Regulatory Compliance

SABTNL has duly informed the stock exchanges about this development, complying with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided detailed disclosures as required by SEBI circulars, ensuring full transparency for its shareholders and the market at large.

This strategic move by Sri Adhikari Bros. Tele Network Limited appears to be part of its portfolio optimization efforts, potentially allowing the company to focus on its core media and entertainment business activities.

Sri Adhikari Bros. Tele Network Limited (SABTNL) has announced the successful completion of its resolution plan one year ahead of schedule, marking a significant milestone in the company's financial recovery. The media and entertainment firm also released its unaudited financial results for the first quarter, revealing ongoing challenges in revenue generation.

Early Completion of Resolution Plan

SABTNL informed shareholders on May 27 that it had fulfilled all obligations under its resolution plan, paying off all financial and operational creditors as stipulated. This early completion demonstrates the company's commitment to financial restructuring and its ability to meet its debt obligations ahead of the projected timeline.

Q1 Financial Performance

For the quarter ended June 30, SABTNL reported the following key financial metrics:

The company's revenue from operations saw a significant decline compared to the same quarter last year, dropping from ₹100.00 lacs to ₹3.47 lacs. However, other income of ₹33.60 lacs partially offset this decrease. Despite these challenges, SABTNL reported a net loss of ₹183.57 lacs for the quarter, compared to a profit of ₹6.48 lacs in the previous year's corresponding quarter.

Strategic Initiatives and Future Outlook

SABTNL's management has emphasized its focus on collaborating with young talent to execute new ideas and drive business growth. The company is ramping up efforts to adapt to the evolving media and entertainment industry landscape, aiming to leverage its pioneering status in the field.

Corporate Governance and Transparency

In line with its commitment to transparency, SABTNL has appointed CS Krina Gokulkumar Shah as the Secretarial Auditor for a term of five consecutive years, subject to shareholder approval. This appointment aligns with the company's efforts to maintain strong corporate governance practices.

Divestment of Subsidiary

The Board of Directors has approved the sale of SABTNL's 35.68% stake in its subsidiary, Westwind Realtors Private Limited (WRPL), to Sri Adhikari Brothers Assets Holding Private Limited (SABAHPL). This transaction, valued at approximately ₹18.20 crores, is expected to be completed by August 31, after which WRPL will cease to be a subsidiary of SABTNL.

While SABTNL faces ongoing financial challenges, as evidenced by its Q1 results, the company's successful completion of its resolution plan and strategic initiatives demonstrate its commitment to financial recovery and future growth in the dynamic media and entertainment sector.