Usha Martin Limited has taken a significant step in optimizing its asset portfolio by entering into an agreement to sell its leasehold land measuring approximately 10.11 acres in Sriperumbudur, Tamil Nadu. The transaction, concluded on 21st August 2025, includes the sale of the land along with structures, plant, and machinery to UGP Engineering Private Limited. This strategic move aligns with Usha Martin's focus on streamlining operations and concentrating on its core business areas.
Key Highlights of the Transaction:
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Agreement Date and Completion: The sale agreement was finalized and completed on the same day, 21st August 2025, reflecting the swift execution of the deal.
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Consideration: The total consideration for the sale stands at Rs 29.52 crores.
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Nature of Assets: The land involved is leasehold and measures about 10.11 acres. It includes existing structures, plant, and machinery situated in Sriperumbudur, a prominent industrial hub in Tamil Nadu.
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Buyer Details: The buyer, UGP Engineering Private Limited, is based at Ambattur Industrial Estate, Chennai. The company is not related to Usha Martin or its promoter group, ensuring the transaction is independent and unbiased.
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Transaction Nature: This is not a related party transaction; it has been conducted at arm’s length to uphold transparency and fairness.
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Business Impact: The assets sold are non-core to Usha Martin’s main operations, and therefore, the sale is not expected to significantly affect the company’s turnover, revenue, or net worth.
Regulatory Compliance and Strategic Implications:
Usha Martin has complied with the Securities and Exchange Board of India (SEBI) Listing Regulations and the master circular issued on November 11, 2024 (reference no. SEBI/HO/CFD/PoD2/CIR/P/0155), which governs disclosure and compliance requirements for listed companies. This adherence ensures that the transaction’s disclosure is timely, transparent, and in line with regulatory norms.
By divesting these non-core assets, Usha Martin aims to reinforce its financial position by unlocking value from the land holdings that do not contribute directly to its core wire rope manufacturing business. This move signals a strategic shift to optimize resource allocation, reduce distractions, and potentially invest proceeds into growth areas or operational efficiencies within the company’s primary business segment.
Context of Sriperumbudur Land and Market Outlook:
Sriperumbudur is a well-known industrial and manufacturing hub near Chennai, hosting numerous multinational companies and factories. The locality’s real estate and industrial land have witnessed considerable demand due to ongoing infrastructure developments like the Chennai-Bangalore Expressway, proposed metro expansions, and enhanced connectivity to airports.
Given this backdrop, the sale of leasehold land in this location offers a lucrative opportunity for UGP Engineering Private Limited to expand its operations or asset base in a growing industrial corridor. For Usha Martin, realizing Rs 29.52 crore for 10.11 acres of leasehold land along with associated assets represents a substantial value recovery.
Summary of the Deal:
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Asset Sale: Leasehold land of 10.11 acres including plant and machinery in Sriperumbudur.
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Buyer: UGP Engineering Private Limited, unrelated to Usha Martin’s promoter group.
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Transaction Date: Agreement signed and completed on 21st August 2025.
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Sale Consideration: Rs 29.52 crores.
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Strategic Rationale: Disposal of non-core assets to focus on core business operations.
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Regulatory Compliance: Full compliance with SEBI Listing Regulations and latest master circular.
This landmark transaction by Usha Martin underscores the company’s commitment to corporate governance, transparency, and strategic focus amid a dynamic industrial landscape. Market watchers will follow closely how Usha Martin utilizes the proceeds of this sale to drive its core business growth while continuing to maintain a robust asset base.
Source: Company Disclosure to the Stock Exchanges
