Zenith Fibres Sheds Stake in Associate: Strategic Divestment Approved

Zenith Fibres Limited has made a significant move by approving the sale of 360,000 equity shares in its associate company, Rainy Properties Pvt Ltd (RPPL), for a total consideration of Rs 5.4 million. This decision, made during a board meeting on August 10, 2024, marks a strategic shift for the company. The sale price of Rs 15 per share represents a premium over RPPL's face value of Rs 10. Post-transaction, RPPL will cease to be an associate of Zenith Fibres. This divestment aligns with Zenith's efforts to streamline its portfolio and focus on core operations. The move is expected to be completed within 60 days, potentially bolstering Zenith's financial position and allowing for reinvestment in growth areas.

 

Source: BSE Filing, March 27, 2025