NHC Foods Ltd Approves Letter of Intent for Acquisition of Agri Commodity Trading Firm Agriconnect Solutions
NHC Foods Ltd has approved a Letter of Intent (LOI) regarding the proposed investment and acquisition of M/s. Agriconnect Solutions Private Limited, a company involved in the Supply and Trading of Agri Commodities. This strategic move is intended to introduce enhanced procurement and distribution capabilities into NHC Foods' operations.M/s. Agriconnect Solutions Private Limited has been operating since 2021 and has built a profitable track record within the industry. The company reported a top line revenue of INR 117.57 crores during FY25, while its peak revenue reached INR 360 crores in FY24. Financially, Agriconnect earned PAT of INR 2.89 lacs during FY25 and clocked a peak PAT of INR 31.25 lacs during FY24.
The company's financial performance over the last three years, along with its corporate structure details, are provided below:
| Financial Metric | Details (Agriconnect Solutions Private Limited) |
|---|---|
| Authorized Capital | Rs. 50,00,000 / - |
| Paid Up Share Capital | Rs. 50,00,000 / - |
| Size/Turnover (FY25) | Rs. 117.57 Cr |
| Business Type | Supply and Trading of Agri commodities |
The decision to acquire Agriconnect Solutions Private Limited is aimed at achieving strategic synergy for NHC Foods Ltd. The procurement and distribution capabilities of the target company are expected to significantly strengthen the existing business model of NHC Foods Ltd. Furthermore, the positive cash-flows generated by Agriconnect will bolster the financials of the acquiring company. NHC Foods Ltd has also indicated its willingness to provide necessary working capital assistance to the Target Company to facilitate further business expansion.
The acquisition timeline suggests a completion window of three months, which is allocated for conducting the necessary due diligence process of the company. Regarding the nature of consideration, cost of acquisition, percentage of shareholding, and number of shares acquired, these details are set to be determined after the completion of the required due diligence process and obtaining a Valuation Report from an Independent Valuer.
Stock Price Movement
At the close of trading today, NHC Foods Ltd settled at ₹1.09 per share. The shares moved within a daily range spanning from a low of ₹1.04 to an intraday high of ₹1.12.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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