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Mudra Lifestyle to sell Unit D-1 of its Fabric Business located at Tarapur for Rs 46.49 crore

10 Feb 2014 Evaluate

Mudra Lifestyle has received an approval to sell Unit D-1 of company’s Fabric Business located at Tarapur, with related assets and liabilities as identified, on a going concern basis, by way of slump sale to E-Land Fashion India, which is a 100% subsidiary of the holding company, E-Land Asia Holding, for a lump sum consideration of Rs 46.49 crore.

The above is on basis of an independent valuation carried out by MZSK & Associates, Chartered Accountants, Mumbai. The board of directors at its meeting held on February 07, 2014 has approved for the same subject to the approval of shareholders to be obtained by way of postal ballot. The board also approved to sell specified business / assets to prospective buyer(s) for an appropriate consideration depending on the prevailing market conditions.

The above steps were taken based on a comprehensive review undertaken in respect of the business operations of the company, where the key findings included that the company is in need of funds; needs to improve its operating efficiency and needs to reduce its high interest cost due to high debt burden.

E-Land Apparel Share Price

14.52 0.27 (1.89%)
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