Transaction Details

The Board of Directors of Desi Farms India Limited approved the allotment of 2,11,07,790 (Two Crores Eleven Lakhs Seven Thousand Seven Hundred Ninety) equity shares on a preferential basis to shareholders of SNA Milk and Milk Products Limited (SNA) and DFSU Farmer Connect Private Limited (DFSU) for consideration other than cash.

Acquisition Structure

  • Acquired 71.09% stake in SNA Milk and Milk Products Limited on fully diluted basis, including acquisition via allotment of 3% Compulsorily Convertible Preference Shares on 04th July 2026
  • Acquired 42.69% stake in DFSU Farmer Connect Private Limited
  • Transaction executed through share swap arrangement
  • Total acquisition cost: Approximately ₹284.96 Crores

Shareholding Acquired

  • SNA: 80,520 equity shares and Compulsorily Convertible Preference Shares representing 71.09% of issued and paid-up capital on fully-diluted basis
  • DFSU: 78,09,990 equity shares representing 42.69% of issued and paid-up capital

Related Party Transaction

The acquisition qualifies as a related party transaction under Section 2(76) of the Companies Act, 2013. Mr. Sunil Kumar Shahi, who belongs to the Promoter/Promoter Group of Desi Farms India Limited, serves as Director/Shareholder of both target entities. The transaction was executed at "arm's length" based on valuation report from a Registered Valuer.

Target Company Profiles

SNA Milk and Milk Products Limited

  • Incorporated: 27th May, 2016
  • Business: Manufacturing, processing, and distribution of milk and milk-based products including liquid milk, dairy derivatives, and ice cream
  • Operations span procurement of raw milk, quality testing, processing, packaging, cold-chain storage, and distribution
  • Market Presence: Mumbai, Pune, Bangalore, Ahmedabad, Hyderabad and other tier 1 cities
  • Financial Turnover:
  • FY 2024-25: ₹33,74,44,513.73
  • FY 2023-24: ₹20,12,25,524.71
  • FY 2022-23: ₹17,90,52,584.62

DFSU Farmer Connect Private Limited

  • Incorporated: 27th August, 2025
  • Business: Manufacturing, processing, trading, marketing and distribution of ice creams, healthy snacks and other ancillary and allied food products
  • Activities include product development, sourcing of raw materials, production, quality control, packaging, branding and distribution through multiple channels

Strategic Rationale

The acquisition enables entry into stable, consumption-driven dairy and food products sector. Expected benefits include diversification of business operations, better utilization of infrastructure, operational synergies, improvement in consolidated revenues, and long-term financial performance without adversely impacting existing logistics operations.

Regulatory Approvals

The Company has received all requisite approvals including:

  • In-principle Approval of BSE Limited for Preferential Issue dated 24th June 2026
  • Approval of the members of the company

Timeline

The Company is in process of completing 100% acquisition of SNA and DFSU within the prescribed time period pursuant to the BSE In-principle approval dated 24th June 2026.

Current Status

As of 04th July 2026, the company has acquired:

  • 71.09% stake in SNA Milk and Milk Products Limited on fully diluted basis
  • 42.69% stake in DFSU Farmer Connect Private Limited