Mukand Limited

Execution of Term Sheet for Sale of Land at Kalwa

Main Body

The subject of the sale comprises:

1. Land parcels admeasuring 35,548.93 square metres (equivalent to approximately 8.78 Acres) as per Property Cards extracts, comprised of several CTS numbers situated in Village Kalwa, Thane district.

2. A portion of land admeasuring approximately 1,691.64 sq. mtrs (equivalent to 0.42 Acres), with a width of 9 meters, which forms part of a larger portion of land admeasuring 8,509.97 sq. mtrs (the Northern Access Road).

The transaction includes the grant of non-exclusive rights of way:

  • Subject to an existing non-exclusive right of way in perpetuity granted by the Company to certain entities over the Northern Access Road.
  • A grant by the purchaser to the Company for a period of 5 years over the land parcel described in point (ii) above.
  • A grant by the Company to the purchaser, in perpetuity, over the remaining portion of the Northern Access Road admeasuring approximately 6,818.33 sq. mtrs (equivalent to 1.68 Acres).

The composite consideration for the land and rights of way is Rs. 55 crore per acre, aggregating to approximately Rs. 506 crore. The Company has received an advance of Rs. 10 crore from the purchaser.

The completion of the sale is subject to several conditions precedent, including:

  • Obtaining necessary approvals, permissions, and NOCs from the Government of Maharashtra, the Collector of Thane, the Gram Panchayat, and all other concerned authorities.
  • Fulfilment of conditions precedent, a joint survey, and demarcation of the land aligned with a sub-division order to be obtained.
  • The purchaser being satisfied with the outcome of its technical and other due diligences.

The final consideration is subject to revision based on the actual measurement of the land parcels.

Strategic Rationale & Impact

The disclosure states that the sale is not expected to have an impact on the operations of the Company. Furthermore, it confirms that the sale does not constitute the sale of an undertaking or substantially the whole of the undertaking of the company under Section 180(1)(a) of the Companies Act, 2013.