Mudra Lifestyle to sell fabric unit to E-Land Fashion

The Board of Directors of Mudra Lifestyle, in its meeting recently, has decided to sell Unit D-1

of the company's fabric business based in Tarapur. This will be done by way of slump sale to E-Land Fashion India, a 100 percent subsidiary of the holding company, E-Land Asia Holding, for a lump-sum amount of Rs 46.49 crores.

The Board also approved the proposal to sell specified business/assets to prospective buyers for an appropriate consideration depending on the prevailing market conditions. The above decisions are subject to the approval of shareholders to be obtained by way of postal ballot.

The decision to sell off was arrived at, based on a comprehensive review undertaken on the business operations of the company. The findings pointed out that the company is in need of funds, it needs to improve its operating efficiency and reduce its high interest cost due to the high debt burden.