Kohinoor Foods Limited has reviewed and approved a strategic investment by Vikas Lifecare to take over the business. Vikas Lifecare is involved in manufacturing and trading of Plastics, Polymer & Chemicals and Plastic products. With the latest acquisition, the company has forayed into the FMCG sector as well.
Vikas Lifecare’s investment of Rs 250 crore will make it a debt-free entity, according to an exchange filing by Kohinoor Foods. Kohinoor Foods, incorporated in 1989, is engaged in manufacturing and marketing of food products including Basmati Rice, Wheat Flour, Ready to Eat Curry, Frozen Food and others.
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The filing added that “a definitive agreement will be entered into to formalize the transaction following the completion of the due diligence process”.
Vikas Lifecare’s board had last month approved investment of up to Rs 250 crore in Kohinoor Foods in line with the company’s pre-determined long-term growth strategies.
Meanwhile, shares of Kohinoor Foods fell nearly 1 per cent to close at Rs 69.80 on the NSE during Monday’s trade. The stock has given a whopping 800 per cent return in the last one year, while it has gained 25 per cent year-on-year.
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