Forbes & Company spurts on land monetization deal

Forbes & Company hit an upper circuit of 5% at Rs 1601.85 after the company's board approved selling 3.80 acre-land in Chandivali (Mumbai) to GPX India and Equinix India for Rs 200 crore.

In a regulatory filing made after market hours on Tuesday, the company said that the board of directors had approved entering into memorandum of understanding (MOU) with GPX India (GPX) and Equinix India (Equinix) for sale of approximately 3.804 acre of land at Chandivali for a consideration of Rs 200 crore.

The MOU is terminable at the option of GPX. The agreement for sale is expected to be executed by 31 January 2021 and the completion of the proposed transaction subject to due diligence, execution of definitive documents, fulfillment of various condition precedents, is expected to be completed in March 2021.

"GPX and Equinix are not related parties to the promoters/promoter group/group companies of the company and the proposed transaction is not a related party transaction, Forbes & Company said in a statement.

Forbes & Company is mainly engaged in the business of manufacturing and trading of engineering products, real estate development projects and leasing of premises.

The company reported a consolidated net loss of Rs 4.87 crore in Q2 FY21 as against a net loss of Rs 164.99 crore in Q2 FY20. Net sales during the quarter declined by 7.4% YoY to Rs 672.35 crore.

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