Zenith Fibres Limited, a leading manufacturer in the fibres industry, has announced the termination of Share Purchase Agreements with five buyers for the sale of equity shares in Rainy Properties Pvt Ltd. The termination, effective September 18, 2025, comes after the buyers failed to fulfill their obligations within the extended timeline provided by the company.

Background of the Transaction

In August 2024, Zenith Fibres had initially approved the sale of 360,000 equity shares of Rainy Properties for a total consideration of Rs. 5,400,000.00. The company had entered into agreements with ten potential buyers for this transaction.

Partial Completion and Extended Timeline

As per the company's earlier intimation dated October 7, 2024, transactions with five of the buyers were successfully completed. The remaining five buyers requested additional time to complete their respective transactions, which was granted by Zenith Fibres.

Termination of Agreements

Despite the extended timeline, the five remaining buyers failed to fulfill their obligations or complete the transactions. Consequently, Zenith Fibres was compelled to terminate the respective Share Purchase Agreements dated August 10, 2024. The termination was executed through letters issued on September 18, 2025.

Official Notification

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Zenith Fibres Limited has officially notified the BSE Limited about this development. The company secretary, Dharati Bhavsar, confirmed that the Share Purchase Agreements now stand terminated in their entirety, effective September 18, 2025.

Impact on Zenith Fibres

While the termination of these agreements may affect the planned divestment of Rainy Properties shares, Zenith Fibres has not provided any information on how this development might impact its financial position or future strategies regarding the stake in Rainy Properties Pvt Ltd.

Investors and stakeholders of Zenith Fibres Limited are advised to monitor further announcements from the company for any updates on this matter or potential alternative arrangements for the sale of the remaining Rainy Properties shares.

Zenith Fibres , a manufacturer of manmade fibre and wind power generator, has announced its unaudited financial results for the first quarter, along with several key board decisions.

Financial Performance

The company reported revenue from operations of Rs. 972.02 crore for Q1, compared to Rs. 1,031.42 crore in the same quarter last year, marking a decrease of 5.76%. The total income, including other income, stood at Rs. 1,063.13 crore, down from Rs. 1,111.50 crore in the corresponding quarter of the previous year.

Despite the decline in revenue, Zenith Fibres managed to post a profit before tax of Rs. 49.59 crore, although this was lower than the Rs. 71.25 crore reported in the corresponding quarter of the previous year.

The company's net profit after tax for Q1 was Rs. 37.82 crore, compared to Rs. 53.17 crore in the same period last year, representing a decrease of 28.87%. Consequently, the earnings per share (EPS) decreased to Rs. 0.96 from Rs. 1.35 in the same period last year.

Segment Performance

Zenith Fibres operates in two segments:

1. Manmade Fibre: This segment generated revenue of Rs. 970.15 crore but reported a loss of Rs. 79.56 crore before tax and interest.
2. Wind Mill: The wind power generation segment contributed Rs. 62.93 crore to revenue and posted a profit of Rs. 41.80 crore before tax and interest.

Board Decisions

In addition to the financial results, the Board of Directors made several key decisions during their meeting held on August 2:

Continuation of Independent Director

The Board approved the continuation of Mrs. Rashmi Desai as an Independent Director (Non-executive) until November 10, 2027, subject to shareholder approval at the upcoming Annual General Meeting. This decision was made in light of Mrs. Desai reaching the age of 75 during her current term.

Appointment of Secretarial Auditor

Mr. Upendra Shukla, proprietor of M/s. Upendra Shukla & Associates, was appointed as the Secretarial Auditor for a period of five consecutive years, subject to shareholder approval.

These decisions reflect the company's commitment to maintaining strong corporate governance practices and ensuring continuity in its board composition.

The financial results and board decisions were approved at the Board meeting, which commenced at 12:00 noon and concluded at 12:50 p.m. on August 2.