Aro Granite board approves ₹67 Cr slump sale of its Jaipur unit — more than the company's market value

On Monday, September 7, at 3:44 PM — fourteen minutes after the market closed — Aro Granite Industries told the exchanges its board had approved selling one of its business undertakings: the unit at the Multi-Product SEZ of Mahindra World City (Jaipur), Rajasthan, by way of a slump sale on a going-concern basis. The headline number is what makes this filing unusual: the consideration contemplated in the draft MOU is ₹67 crore, while the whole company — 1.53 crore shares at ₹24.84 — is valued by the market at roughly ₹38 crore. A single unit is being sold, subject to approvals, for about 1.8 times the market capitalisation of the company that owns it.

It is worth being precise about how firm this deal is, because the filing itself is careful. What the board approved is the draft of a Memorandum of Understanding, explicitly described as non-binding. A formal Business Transfer Agreement gets executed only after shareholders approve via postal ballot and banks and regulatory authorities sign off. The shareholder vote is not a routine one: because the unit exceeds 20% of net worth, the sale falls under Section 180(1)(a) of the Companies Act and Regulation 37A of SEBI LODR, and the filing states the resolution carries the special public voting thresholds prescribed under Regulation 37A. With the promoter holding at 41.08% (unchanged across the last two quarters, with zero FII and DII holding), the public shareholders' vote will matter to the outcome. No completion date is committed — the filing says completion 'will occur as may be mutually agreed' after approvals.

The table carries an observation the filing does not make but the numbers force: the market values all of Aro Granite — including this unit — at roughly ₹38 crore, less than a quarter of the ₹173.94 crore net worth the company reports. If the ₹67 crore actually arrives, it would exceed the current market value of the entire company, with roughly 84% of FY26 revenue and 72% of stated net worth still inside it. That is an inference about the arithmetic, not about the outcome — the price is a draft-MOU figure, and the discount to book that the market applies presumably reflects the operating record, which is where the second half of this story lives.

The seller here is not selling from strength. Aro Granite has reported four consecutive quarterly losses — ₹2.49 Cr, ₹2.97 Cr, ₹6.41 Cr and ₹7.45 Cr from Q2 FY26 through Q1 FY27, a cumulative ₹19.3 crore — and interest expense ran to ₹15.11 crore across FY26, with another ₹2.92 crore in Q1 FY27 alone. Against that, the stated rationale reads as a deleveraging plan: the filing cites 'strategic portfolio optimization to unlock trapped economic capital, lean out operations, and mitigate segment risks', with proceeds allocated toward expanding high-margin core business verticals, reducing cost of loans, and general working capital. A ₹67 crore inflow against an interest bill of ₹15 crore a year would materially change that equation — if it completes on those terms.

At ₹24.84 the stock sits 45.6% below its adjusted 52-week high of ₹45.63 (September 2025) and 33% above the March low of ₹18.67. Two timing notes matter for reading the tape. First, Monday's −0.7% close at ₹24.38 came before the filing — it reached the exchange at 3:44 PM, after the 3:30 PM close — so it is not a reaction to the announcement. Second, Tuesday's +1.9% is the first session in which the news could be traded, but this report's data was compiled around 10:08 AM IST, well inside the session, on volume of just 399 shares at that point; the full session's verdict was not yet in. In a stock where daily volumes run in the low thousands to low tens-of-thousands of shares, single-session moves carry limited information either way.