Kohinoor Foods Limited has reviewed and approved a strategic investment by Vikas Lifecare to takeover the business. Vikas Lifecare is involved in manufacturing and trading plastic, polymer and chemicals, and Plastic Products. With the latest acquisition, the company has also started dealing in FMCG sector.
According to an exchange filing by Kohinoor Foods, Vikas Lifecare's investment worth Rs 250 crore will make it into a debt-free entity. Kohinoor Foods, incorporated in 1989, is engaged in manufacturing and marketing of food products including basmati rice, wheat flour, ready to eat curries, frozen food and more.
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The filing added that "a definitive agreement to formalise the transaction shall be entered into after the completion of the due diligence process".
Vikas Lifecare board had last month approved an investment up to Rs 250 crore in Kohinoor Foods in line with the company’s pre-defined long-term growth strategies.
Meanwhile, Kohinoor Foods shares finished nearly 1 per cent lower at Rs 69.80 apiece on NSE during Monday's trade. The stock has yielded a massive 800 per cent in the past one year while it has rallied 25 per cent YTD.
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