Satchmo Holdings Limited has announced the successful commencement of production at its food manufacturing facility through a wholly owned subsidiary, marking a significant milestone in the company's strategic expansion into the food industry.

Production Facility Details

The company has successfully commissioned its manufacturing facility (Food Factory) for production of various packaged food items. The facility is equipped to produce a diverse range of products targeting the growing packaged food market.

Current Operations Status

The subsidiary has commenced operations and started production specifically for sampling and testing purposes. This initial phase is crucial for quality assurance and product refinement before market launch. Upon successful completion of this testing phase, the company expects to launch its first set of packaged food products in the market during the current quarter.

Investment and Strategic Significance

Satchmo Holdings has made substantial capital expenditure (CAPEX) investment in the subsidiary towards establishing the initial production capacity of the food manufacturing facility. This investment represents a significant component of the company's strategic expansion plans and future growth trajectory in the food industry.

The development follows the company's earlier intimation regarding the incorporation of a wholly owned subsidiary specifically for undertaking food and catering business operations. This move demonstrates Satchmo Holdings' commitment to diversifying its business portfolio and entering the lucrative food manufacturing sector.

The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding this material business development.

Satchmo Holdings Limited has successfully completed the divestment of its wholly owned subsidiary Marathalli Ventures Private Limited (MVPL) for ₹25.00 lakh, marking the end of its control over the subsidiary company. The transaction was completed on January 09, 2026, following the execution of a Share Purchase Agreement on December 24, 2025.

Transaction Details and Consideration

The divestment involved the sale of 90% shares held by Satchmo Holdings Limited in MVPL to two buyers - Aviral Commercial Services LLP and Vital Realcon LLP. The total consideration received amounts to ₹25.00 lakh (Rupees Twenty Five Lakhs).

Financial Performance of Divested Subsidiary

Marathalli Ventures Private Limited contributed significantly to the parent company's operations during the last financial year, though it carried substantial negative networth.

Regulatory Compliance and Approvals

The divestment process was initiated following shareholder approval obtained on February 23, 2022, for the de-subsidization of MVPL. The approval was granted with a condition precedent requiring completion of final one-time settlement with existing lenders or receipt of lender's No Objection Certificate (NOC).

Satchmo Holdings Limited successfully completed the one-time settlement (OTS) with its current lender and received no-dues certificates from existing lenders, as intimated on December 30, 2025. This completion satisfied the condition precedent and enabled the company to proceed with identifying new investors for MVPL.

Post-Transaction Arrangements

Following the completion of the share transfer, MVPL has ceased to be a subsidiary of Satchmo Holdings Limited with immediate effect. The Board Meeting of MVPL approved the transfer of 90% shares held by the holding company, formally ending the parent-subsidiary relationship.

During the transition period, Satchmo Holdings Limited will provide handholding support and bear sole responsibility for satisfying conditions precedent and subsequent, including certain pending litigations and implementation of related resolutions for the next few months.

Regulatory Disclosures

The transaction does not fall within related party transactions and is being conducted outside any scheme of arrangement. The company confirms compliance with Regulation 37A of SEBI (LODR) Regulations through the shareholder approval obtained in February 2022. The disclosure has been made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.