Visaka Industries Limited has entered into a significant land transaction, announcing the transfer of leasehold rights for a 7-acre property in Chennai. The company informed stock exchanges on December 11, 2025, about this strategic asset disposal under SEBI regulations.

Transaction Overview

The company has signed a Memorandum of Understanding (MoU) with M/s Caresoft Global Mobility Technologies Private Limited for the transfer of balance term leasehold rights. The land is situated at Mahindra World City Developers Ltd., Chennai, specifically in Anjur and Thenmelpakkam Villages, Chengalpattu Taluk, Kanchipuram District, Tamil Nadu.

Buyer Information and Transaction Structure

Caresoft Global Mobility Technologies Private Limited, incorporated with CIN U62090TN2025FTC186101, is the acquiring entity for this transaction. Importantly, the buyer does not belong to the promoter or promoter group of Visaka Industries, ensuring this is not a related party transaction.

The consideration amount of ₹32.86 crores will be received in one or more tranches, subject to deduction of applicable taxes. This structure provides flexibility in payment terms while ensuring compliance with tax obligations.

Timeline and Regulatory Compliance

The transaction is expected to be completed within 60 days from the MoU date, with provisions for extension up to an additional 30 days if required. The completion timeline is subject to receipt of requisite regulatory approvals.

The company has made this disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating its commitment to transparent corporate governance and timely investor communication.

Strategic Implications

This land disposal represents a non-strategic asset monetization for Visaka Industries. The transaction does not fall within any scheme of arrangement and is not classified as a slump sale, indicating a straightforward asset transfer structure. The proceeds from this transaction could potentially be utilized for the company's core business operations or other strategic investments.

Visaka Industries Limited , a prominent player in the building products and synthetic yarn sectors, has reported its financial results for the second quarter, showing signs of improvement despite ongoing challenges.

Financial Performance

The company posted a consolidated net loss of ₹87.00 million in Q2, marking a significant improvement from the ₹166.00 million loss recorded in the same period last year. This reduction in losses indicates the company's efforts towards financial recovery are gaining traction.

Concurrently, Visaka Industries saw an uptick in its quarterly revenue, which increased to ₹3,250.00 million, up from ₹3,080.00 million in the corresponding quarter of the previous year. This 5.52% year-over-year growth in revenue suggests a gradual strengthening of the company's market position and demand for its products.

Segment Performance

The company's financial results reveal insights into its two main business segments:

1. Building Products: This segment, which includes products like fiber cement boards and panels, generated revenue of ₹26,640.79 million in Q2. It remains the primary revenue driver for Visaka Industries.

2. Synthetic Yarn: The synthetic yarn segment contributed ₹5,855.29 million to the quarterly revenue, indicating its significant role in the company's product portfolio.

Balance Sheet and Cash Flow

As of September 30, Visaka Industries reported:

• Total assets of ₹139,945.28 million
• Total equity of ₹78,450.22 million
• Cash and cash equivalents of ₹948.50 million

The company's cash flow statement indicates a net decrease in cash and cash equivalents of ₹673.76 million for the half-year ended September 30.

Strategic Developments

Notably, Visaka Industries sold land situated in Ahmedabad, Gujarat during this period. The profit from this sale, amounting to ₹3,674.30 million, was reported as an exceptional item, potentially contributing to the company's improved financial position.

Outlook

While Visaka Industries continues to face challenges, as evidenced by the quarterly loss, the reduction in net loss and growth in revenue suggest that the company's strategic initiatives may be starting to yield positive results. The building products segment remains crucial to the company's performance, and investors will likely be watching closely to see if this trend of improvement continues in the coming quarters.

As always, stakeholders should consider these results in the context of broader market conditions and the company's long-term strategies when making investment decisions.