Real Estate Stock Receives Rs 2.25 Crore From SAB Mall Transaction; Proceeds To Be Used For Debt Reduction
Join Us
Follow Us
Steel Strips Infrastructures has received the balance consideration and transferred management rights of SAB Mall, Noida, with the proceeds earmarked for payment of company liabilities.
✨ Key Takeaways
On Friday, Indian equity benchmarks ended lower, with the benchmark Nifty 50 index declining 0.21 per cent to close at 23,366.70. Amid the broader market weakness, investors tracked developments in Steel Strips Infrastructures Ltd (SSIL) after the company provided an update regarding the transfer of management rights and sale transaction related to SAB Mall, Noida.
Company Receives Balance Consideration
Steel Strips Infrastructures informed the stock exchanges that it has received the balance consideration of Rs 2.25 crore following the execution of an addendum to the agreement to sell and Memorandum of Understanding (MOU) relating to SAB Mall, Noida. The amount comprises Rs 1 crore towards management rights and Rs 1.25 crore towards sale consideration.
The company has also transferred the management rights of the property and handed over specified original title documents to the buyer in accordance with the terms of the MOU.
Sale Completion Expected By August 2026
According to the disclosure, the expected date for completion of the transaction is August 10, 2026, subject to clearance of dues and receipt of necessary permissions from the Noida Authority. The company stated that the sub-lease deed will be executed after completion of the required formalities.
The buyers involved in the transaction are SMC Enterprises Private Limited and Shubham Properties Private Limited, both based in New Delhi. The company clarified that the buyers are not related to the promoter or promoter group and that the transaction does not constitute a related-party transaction.
SAB Mall Contributes Majority Of Revenue
As per the company's disclosure, SAB Mall, Noida contributed Rs 136.03 lakh, representing approximately 97.93 per cent of the company's revenue or income during FY26. The revenue was generated through rental income, hoarding and publicity charges, parking receipts and maintenance-related income associated with the property.
The company also noted that it remains loss-making and therefore the asset did not contribute positively to net worth during the financial year.
Proceeds To Be Utilised For Liabilities
Steel Strips Infrastructures stated that the proceeds from the transaction will be utilised towards the payment of liabilities of the company, which is expected to support its financial position.
About The Company
Steel Strips Infrastructures Limited is engaged in Real Estate and infrastructure-related activities. The company has historically generated income through leasing, rental and commercial property-related operations, including its SAB Mall property in Noida.
The latest transaction marks a significant development for the company, given the substantial contribution of the asset to its revenue profile and its plans to deploy the proceeds towards reducing outstanding liabilities.
What are your views on Steel Strips Infrastructures' SAB Mall transaction?
Share your thoughts in the comments below.
Disclaimer: This article is for informational purposes only and not investment advice.