Board Approval and Transaction Details

The Board of Directors of Desi Farms India Limited approved the allotment of 28,06,200 (Twenty-Eight Lakh Six Thousand Two Hundred) 3% Compulsorily Convertible Non-Cumulative Preference shares on a preferential basis to the shareholders of SNA Milk and Milk Products Limited for consideration other than cash. This allotment is pursuant to the acquisition of 12.39% stake in SNA Milk and Milk Products Limited through a share swap arrangement.

Target Entity Information

Name: SNA Milk and Milk Products Limited

Incorporation Date: 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 to retail and institutional customers.

Geographic Presence: Mumbai, Pune, Bangalore, Ahmedabad, Hyderabad and other tier 1 cities.

Financial Performance of SNA

  • FY 2024-25 Turnover: ₹33,74,44,513.73
  • FY 2023-24 Turnover: ₹20,12,25,524.71
  • FY 2022-23 Turnover: ₹17,90,52,584.62

Related Party Transaction Status

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

Industry Classification

Milk and Milk Products

Strategic Rationale and Impact

The acquisition is part of the Company's approved strategic expansion and diversification plan. Desi Farms is engaged in logistics business and milk/milk products and dairy products. The acquisition enables entry into a stable, consumption-driven sector and is expected to result in diversification of business operations, better utilization of infrastructure, operational synergies, and 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 and approval of the members of the company.

Transaction Structure and Consideration

Consideration Type: Share Swap (consideration other than cash)

Instruments Issued: 28,06,200 3% Compulsorily Convertible Non-Cumulative Preference Shares

Cost of Acquisition: Approximately ₹37.88 Crores

Stake Acquired: 14,031 equity shares and Compulsorily Convertible Preference Shares representing 12.73% of the issued and paid-up capital of SNA Milk and Milk Products Limited on fully-diluted basis

Future Plans: The company is in process of 100% acquisition of SNA in the prescribed time period pursuant to the BSE In principle approval.

#Tags: #DesiFarms #SNAmilk #Acquisition #ShareSwap #SEBIRegulation30 #RelatedPartyTransaction #DairySector #Positive