Summit Securities’ Subsidiary To Sell Stake In Sudarshan Electronics

On April 23, 2024, Summit Securities Limited informed in an exchange filing that the company’s wholly-owned subsidiary, Instant Holdings Limited, had entered into an agreement with Kojak Knits Private Limited.

Details of the Agreement 

Instant Holdings Limited has signed an agreement or Memorandum of Understanding (MOU) with Kojak Knits Private Limited to sell Instant Holdings’ entire shareholding in its wholly-owned subsidiary, Sudarshan Electronics & TV Limited.

Summit Securities also stated in the exchange filing that the transaction would be subject to fulfillment of certain conditions set out in the MOU and the signing of a share purchase agreement by the parties.

The MOU is dated April 23, 2024. The sale is expected to be completed within 30 days of the date of the MOU. On completion of the transaction, Instant Holdings Limited will receive a sum of ₹2,27,77,760 (Two crore twenty-seven lakh seventy-seven thousand seven hundred sixty) in one or more tranches.

As per the exchange filing, the proposed sale is outside of a scheme of arrangement. However, the proposed transaction does not constitute the sale of an “undertaking” within the meaning of clause (a) of subsection (1) of Section 180 of the Companies Act 2013. Therefore, Regulation 37 A of the LODR Regulations is not applicable.

Kojak Knits Private Limited, which is the buyer of Sudarshan Electronics & T.V. Limited is involved in the business of manufacturing textile products. The company has a registered office in Mumbai.

In FY 2023, Sudarshan Electronics & T.V. Limited reported a total Income of ₹10.01 lakh and a net worth of ₹47.00 lakh. The income and net worth of Sudarshan are attributed to Summit Securities Limited through its wholly-owned subsidiary, Instant Holdings, and represent 0.20% of Summit’s consolidated income and 0.01% of its consolidated net worth as of March 31, 2023 .

About Summit Securities Ltd 

Summit Securities Ltd (previously known as RPG Itochu Finance Limited) is a non-deposit-taking, Non-Banking Financial Company (NBFC) registered with RBI. The company’s business is to invest in shares and securities. In Q3 FY 2024, Summit Securities reported a net profit of ₹7.38 crore.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.