Nature of the Event: Regulatory disclosure pursuant to SEBI Listing Regulations, Regulation 30, regarding the approval for the sale of an undertaking.
Board Approval: The Board of Directors of TruAlt Bioenergy Limited, at its meeting held on August 4, 2026, approved the sale of the company's undertaking, "Unit 5". The meeting commenced at 10:50 a.m. IST and concluded at 12:10 p.m. IST.
Asset Details: The undertaking being sold is situated at Muttalageri Village, Badami Taluka, Karnataka. The sale includes the land, building, plant and machinery, movable assets, and other assets forming part of Unit 5, and will be executed as a slump sale of a going concern.
Buyer Details: The buyer is M/s. Onkar Agro Sugars & Energy Private Limited. The buyer does not belong to the promoter/promoter group/group companies of TruAlt Bioenergy. The transaction is not a related party transaction and is being done at arm's length.
Consideration: The aggregate consideration for the proposed slump sale is ₹171,00,00,000 (Rupees One Hundred Seventy One Crore Only). This amount is subject to customary closing adjustments.
Rationale for Divestment: The divestment is a strategic decision aimed at strengthening the company's financial position and enhancing operational efficiency. Unit 5 is characterized as a non-core asset that is currently not contributing to the company's revenue or overall sales performance. The unit carries an outstanding term loan of approximately ₹135 crore from the Indian Renewable Energy Development Agency Limited (IREDA), which results in significant finance costs that adversely impact the company's profitability and cash flows.
Use of Proceeds: The sale proceeds will be primarily utilized towards the repayment of the outstanding debt associated with Unit 5. The balance will be deployed in the company's core business operations and other high-growth opportunities.
Financial Impact: The net worth attributable to the undertaking represents ₹159.32 crore, which is 10.53% of the company's net worth as of March 31, 2026. The transaction is expected to substantially reduce the company's debt burden, lower interest costs, improve liquidity, and strengthen its balance sheet.
Conditions and Timeline: The sale is subject to the execution of definitive agreement(s), fulfilment of conditions precedent, and receipt of necessary statutory, regulatory, and other approvals. A Memorandum of Understanding (MOU) was entered into on August 4, 2026. Definitive agreements are to be executed after the completion of due diligence. The expected date of completion of the sale is November 4, 2026.
Regulatory Compliance: The disclosure is made in compliance with Regulation 30 of the SEBI Listing Regulations and Clause 1 of Part A of Schedule III, read with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The information will be made available on the company's website (www.trualtbioenergy.com).