Alfa Transformers Ltd to Sell Vadodara Unit in Slump Sale for Rs 18,00 Crore
Alfa Transformers Ltd has announced the planned slump sale of its Vadodara unit. The transfer was executed on June 19, 2026, and is subject to subsequent shareholder approval, with the transaction expected to be completed within three months.The company agreed that the consideration for the sale of the Vadodara Unit, which will be free of all debts, would be Rs 18,00 Crs. This amount is contingent upon adjustments related to working capital at the date of closing.
KASST Industries Limited, an unlisted Indian company specializing in the manufacturing and marketing of transformers, is slated as the buyer. The transaction has been noted as not being a Related Party Transaction.
The Vadodara Unit, which focuses on the business of designing, manufacturing, and repairing distribution transformers, generated significant revenue but faced operational challenges during the preceding financial year.
Details regarding the unit’s performance during the fiscal year ending March 31, 2026, are as follows:
| Financial Metric | Value |
|---|---|
| Revenue from Vadodara Unit | Rs 1049.30 Lakhs |
| Financial Losses | Rs 272.48 Lakhs |
| Total Accumulated Losses (as of March 31, 2026) | Rs 1581.15 Lakhs |
The company stated that the substantial losses incurred by the Vadodara Unit, coupled with working capital constraints, led to the proposed slump sale. The move is intended to provide immediate funding and make the company debt free.
The Business Transfer Agreement for the sale was executed on June 19, 2026. Completion of the transaction relies upon obtaining necessary shareholder approvals in accordance with prevailing corporate laws. No change in the company's shareholding pattern is anticipated as a result of this unit sale.
Stock Price Movement
For the close of trade on Friday, shares of Alfa Transformers Ltd settled at ₹47.39, rising by 1.98% in a positive session for the company. However, the stock spent the day trading completely locked, as the intraday high and low were identical at ₹47.39.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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