Mayank Cattle Food Acquires M/S Ajay Industries for ₹7 Crore

On March 26, 2024, Mayank Cattle Food Limited informed in a stock exchange filing that the Board of Directors of the company approved the proposed acquisition of partnership firm M/S Ajay Industries through a slump sale on a going concern basis.

Details of the Acquisition

On Tuesday, Mayank Cattle Food Limited stated, “We would like to inform that the Company has approved the Proposal for acquisition of Partnership Firm, M/S AJAY INDUSTRIES, having its business at Ajay Industries, Station Road, Manavadar, Dist: Junagadh 362630 by way of slump sale as a going concern basis.”

The company further stated that the acquisition of the Partnership Firm, M/S AJAY INDUSTRIES, doesn’t fall under the specified transactions of Related Party Transactions as prescribed under Sub-Section (1) of Section 188 of the Companies Act, 2013. The partners of Ajay Industries are the company’s board members: Ankit Bharatbhai Vachhani, Tanmai Ajaybhai Vachhani and Mayank Bharatkumar Vachhani. Additionally, the acquisition of M/S AJAY INDUSTRIES will be on an arm’s length basis.

Mayank Cattle Food Limited informed the stock exchange that the cost of acquisition will be approximately ₹7 crore and is to be completed on or before March 31, 2024. The consideration for the acquisition will be in the form of cash or bank transfer. Through this acquisition, the business of the partnership firm will be transferred to the company as a going concern basis.

Ajay Industries manufactures and trades maize oil, cotton seed oil, maize cake, agricultural commodities, and cattle food. Additionally, it provides services related to the ginning and oil manufacturing industries. Over the last three years, its turnover stood at ₹27,02,58,973.29 as of March 31, 2023, ₹33,03,75,059.90 as of March 31, 2022, and ₹31,15,22,375.92 as of March 31, 2021.

Mayank Cattle Food Limited said in the exchange filing that this acquisition aligns with their expansion strategy in the agriculture business.

On March 26, 2024, the share price of Mayank Cattle Food Ltd opened at ₹113.25, touching the day’s high at ₹114.90, as of 2:45 PM on the BSE.

About Mayank Cattle Food Ltd

Mayank Cattle Food Limited, previously known as Mayank Cattle Food Private Limited, is primarily involved in the manufacturing of cattle food, cattle food cake, edible oil and animal food.

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