Agribio Spirits Limited has extended a corporate guarantee of ₹70.00 crores to secure cash credit facilities for its associate company, Agribiotech Industries Limited. The guarantee has been provided in favor of a consortium of member banks led by Punjab National Bank.

Corporate Guarantee Details

The company has disclosed the extension of the corporate guarantee under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The guarantee serves as security for cash credit facilities availed by Agribiotech Industries Limited.

Promoter Interest and Transaction Structure

The promoters have disclosed their interest in this transaction through their shareholding and directorship in Agribiotech Industries Limited. The company has confirmed that the transaction is conducted on an arm's length basis, ensuring fair commercial terms.

Impact Assessment

Agribio Spirits Limited has assessed that there is no immediate impact on the company from providing this corporate guarantee. However, the company acknowledges potential exposure to the extent of the guarantee amount of ₹70.00 crores in the event that Agribiotech Industries Limited becomes unable to meet its repayment obligations to the lender consortium.

Regulatory Compliance

The disclosure has been made in compliance with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. This ensures transparency regarding the company's contingent liabilities and related party transactions with its associate company.

Agribio Spirits Limited has announced the completion of its acquisition of Solkit Distillery and Brewery Private Limited (SDBPL) in a strategic move to expand its presence in the beverage industry. The company has acquired 100% equity shares of SDBPL for Rs 13.00 crores through a Share Purchase Agreement.

Acquisition Details

The acquisition involved the purchase of 5,00,000 equity shares from five sellers:

1. Soli Ilavia
2. Anosh Ilavia
3. Arash Ilavia
4. Solkit Cosmetics
5. Crystal Ilavia

To comply with the Companies Act, 2013 requirement of a minimum of two shareholders for a private company, the shareholding structure is as follows:

• Agribio Spirits Limited: 98.92% (494,600 shares)
• Mrs. Puja Bajoria (Promoter): 0.54% (2,700 shares)
• Mr. Ashutosh Bajoria (Promoter): 0.54% (2,700 shares)

About Solkit Distillery and Brewery Private Limited

SDBPL, incorporated under the Companies Act, 1956, is engaged in the bottling of beverages, including the manufacturing of Country Liquor/Rajasthan Made Liquor and India Made Foreign Liquor. The company operates on a franchise basis with a production capacity of approximately 1,45,000 units.

The acquired company has shown consistent financial performance over the past three years:

SDBPL's registered office is located at B-188(A), Mewar Industrial Area Road No. 5, Udaipur, Rajasthan 313003.

Strategic Implications

This acquisition aligns with Agribio Spirits Limited's business objectives, which include manufacturing, processing, bottling, and distributing various alcoholic beverages and related products. The move is expected to strengthen the company's position in the beverage industry and expand its product portfolio.

Ratan Singh, Managing Director of Agribio Spirits Limited, confirmed that SDBPL has now become a subsidiary of the company under both the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The acquisition is not considered a related party transaction, and the company has stated that no governmental or regulatory approvals were required for the deal.

Agribio Spirits Limited, formerly known as Beekay Niryat Limited, continues to demonstrate its commitment to growth and expansion in the spirits and beverage sector through this strategic acquisition.