Ovobel Foods Ltd acquires assets of Egg Powder Processing Unit

Ovobel Foods Limited ('the Company') has purchased the assets of the "Egg Powder Processing Unit" of Bestovo Foods Private Limited, having its operational facilities in Achar Thimmapur Village, Irakalgad Hobli, Koppal Taluk and District in the State of Karnataka at a cost of Rs.9.00 Crore, for cash. The assets comprises of 3 acres of land together with all structures and building including machines, underlying consents, approvals, permissions etc. In its present form, this asset acquisition will help the Company increase its production capacity by around 30% annually with a further scope to expand the overall production capacity by upto 50% with some modifications.

The Company believes that the transaction only leads to capacity expansion for the Company as mentioned in SCHEDULE III (B) "Events which shall be disclosed upon application of the guidelines for materiality referred sub-regulation (4) of regulation (30)": Point No. 3 - Capacity addition or product launch.

Shares of OVOBEL FOODS LTD. was last trading in BSE at Rs. 219.60 as compared to the previous close of Rs. 201.40. The total number of shares traded during the day was 15099 in over 295 trades.

The stock hit an intraday high of Rs. 228.95 and intraday low of 200.50. The net turnover during the day was Rs. 3318316.00.

Source : Equity Bulls

Keywords

OVOBELFOODS INE812S01012 AssetPurchase EggPowder ProcessingUnit BestovoFoods