“…we wish to inform you that the Board of Directors of Krsnaa Diagnostics Limited (“Company”), at its meeting held today, has approved the sale of identified diagnostic equipment for an aggregate consideration of up to ₹120 crore to identified purchaser(s), including purchaser(s) that may be identified in the future,” according to a stock exchange filing.
The company said the proposed transaction is part of its ongoing initiative to optimise its asset portfolio and improve capital efficiency. The assets proposed to be sold comprise identified freehold assets that are not subject to any security interest in favour of the company’s lenders.
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Krsnaa Diagnostics said it has built an asset base over the years to support the expansion of its diagnostic operations. As it moves towards an increasingly asset-light and capital-efficient operating model, the company has identified certain assets for monetisation without affecting its core operating capabilities.
The proposed sale is intended to unlock value from these assets and recycle capital towards the company’s core diagnostic business and identified growth opportunities. The initiative is also expected to support asset utilisation, improve return on capital employed (ROCE) and strengthen the balance sheet.
The company said the transaction is an active portfolio and capital optimisation exercise and is not driven by any impairment or diminution in the value of the underlying assets.
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Since the assets are not part of the security package provided to lenders, Krsnaa Diagnostics said the proposed transaction will not affect the assets forming part of that security package. It also does not expect any material adverse impact on its profit and loss account or ongoing business operations.
The company said the transaction does not constitute the sale, lease or disposal of an undertaking or substantially the whole of an undertaking under Section 180(1)(a) of the Companies Act, 2013.
The Board has authorised the Operations Committee to finalise the terms and conditions of the transaction and complete the necessary formalities within the approved aggregate limit of ₹120 crore.
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Shares of Krsnaa Diagnostics Ltd ended at ₹536.65, down by ₹11.80, or 2.15%, on the BSE.