Tokyo Plast International Limited has announced plans to sell an idle property in Mumbai's Andheri East, subject to shareholder approval at an upcoming Extraordinary General Meeting (EGM). The company aims to utilize the proceeds from this sale to strengthen its financial position and support growth initiatives.

Key Details of the Proposed Sale

Rationale for the Sale

Tokyo Plast International has stated that the property has been lying idle for an extended period with no foreseeable business use. The company cited ongoing costs associated with maintaining the underutilized asset, including expenses for maintenance, security, and insurance, without generating any revenue or contributing to profitability.

Proposed Use of Proceeds

The company plans to use the funds from the property sale for:

1. Paying off long-term and short-term debts
2. Enhancing working capital
3. General business purposes and requirements
4. Reinvesting in areas aligned with the company's growth objectives

Shareholder Approval Process

The sale requires approval from shareholders through a special resolution at the EGM. Tokyo Plast International has emphasized that the voting process will comply with regulatory requirements, including:

• Votes cast by public shareholders in favor of the resolution must exceed those against it
• Shareholders who are parties to the sale, directly or indirectly, are not eligible to vote

Management Commentary

Velji L. Shah, Chairman and Managing Director of Tokyo Plast International, stated in the EGM notice, "The sale of this property aligns with our ongoing efforts to streamline operations and optimize our assets. We believe this decision will allow us to redirect resources towards more productive areas of our business, ultimately benefiting our shareholders."

Investor Considerations

While the proposed sale represents a significant corporate action, investors should note that:

1. The transaction is subject to shareholder approval and other necessary regulatory clearances.
2. The company has stated that the sale will not impact its existing business activities.
3. The Board has been authorized to explore alternative sale options if the current proposal does not materialize, provided the overall substance of the transaction remains the same.

Shareholders of Tokyo Plast International Limited are advised to review the detailed EGM notice and consider the potential impact of this property sale on the company's future financial position and growth strategies before casting their votes at the upcoming EGM.

Tokyo Plast International Limited , a company listed on both BSE and NSE, has announced a significant corporate action that could impact its asset portfolio. The Board of Directors has approved the sale of an immovable property in Mumbai, subject to shareholder approval.

Key Details of the Property Sale

Transaction Specifics

The Board of Directors convened on November 10, 2025, to approve the sale of the company's immovable property. The property in question is situated at C.T.S. No. 732, S. No. 49A, H. No. 9, Village Marol, Andheri Kurla Road, Andheri (East), Mumbai – 400059.

Tokyo Plast International has clarified that this transaction does not fall under related party transactions, as the buyer, M/s Afitaplus Ventures LLP, does not belong to the promoter or promoter group of the company.

Regulatory Compliance and Shareholder Approval

The sale requires shareholder approval through a special resolution under Section 180(1)(a) of the Companies Act, 2013, read with Regulation 37A of the SEBI Listing Regulations. To facilitate this, the company has scheduled an Extraordinary General Meeting (EGM) for December 10, 2025, to be held virtually at 12 p.m.

Financial Implications

While the property represents a significant portion of the company's net worth, it's important to note that it does not contribute to the company's turnover or revenue. The sale, if approved, could potentially provide Tokyo Plast International with additional liquidity for its operations or future investments.

Next Steps

Shareholders will play a crucial role in determining the outcome of this proposed sale. If approved at the EGM, Tokyo Plast International expects to complete the transaction within six months, subject to the execution of final documents and receipt of all necessary approvals.

Investors and stakeholders are advised to keep an eye on the outcome of the EGM and any subsequent announcements from the company regarding the progress of this property sale.