IFB Agro Industries to invest Rs40cr in promoter group company IFB Refrigeration

19 Jan 2022 , 10:43 AM

IFB Agro Industries Limited Board of Directors based on the recommendation of the Audit Committee, in its meeting held on January 17, 2022, has approved an investment of up to Rs40cr in Equity Shares and/or Compulsorily Convertible Preference Shares (CCPS) of IFB Refrigeration Limited (IRL) in one or more tranches for a minority stake.

IRL is a promoter group company engaged in the manufacture, assembly, fabrication, design, maintenance, and do all other acts and deeds to deal in all kinds of Refrigerators and compressors for domestic and/ or industrial usages.

At around 10.46 am, IFB Agro Industries Ltd was trading at Rs743 per piece up by Rs3.15 or 0.43% from its previous closing of Rs739.85 per piece on the BSE.

“The acquisition is to be completed by March 31, 2023. (tentative) The total investment shall be in two tranches. The first tranche of investment will be in equity Shares and Compulsorily Convertible Preference Shares (CCPS) respectively, whereas the second tranche will be in CCPS only.

The Company keeps evaluating proposals for equity investment in diverse business as an alternative to investment in mutual funds. Refrigerator’s business being a necessity for every household in the pandemic situation looks promising. Further IRL has an experienced project team in place,” company said in a filing on Tuesday.