V.I.P. Industries Ltd has signed binding agreements to assign the lease of its non-core asset—the Nagpur Property—to DGP Realty Nagpur Pvt Ltd, a subsidiary under its promoter group. The Rs 51.18 crore transaction is being undertaken on an “as is where is” basis and is not considered material.
V.I.P. Industries Limited notified that it has executed binding agreements with DGP Realty Nagpur Private Limited, a wholly owned subsidiary of Piramal Vibhuti Investments Limited (part of the company’s promoter group), for the lease assignment of its non-core asset—‘Nagpur Property’ located at Plot No. L4 and L5, Nagpur Industrial Area, Village Nildoh, Taluka Hingna, District Nagpur.
The Rs 51.18 crore deal will proceed subject to approval from the Maharashtra Industrial Development Corporation (MIDC). The company clarified that although the counterparties fall within the promoter group, the transaction qualifies as a related party deal conducted on an arm’s length basis and does not meet the threshold for materiality under SEBI regulations.
Key Developments
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Transaction value: Rs 51,18,37,000
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Property: Nagpur Industrial Area—Plot No. L4 & L5
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Buyer: DGP Realty Nagpur Pvt Ltd, a promoter group entity
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Nature: Non-core asset lease assignment
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Condition: Subject to MIDC approval
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Classification: Related party transaction (not material)
Sources: BSE filing, V.I.P. Industries Limited corporate announcement