McLeod Russel India has agreed to sell its Corramore Tea Estate for ₹26.16 crore to Krishnabehari Tea Co Ltd. This move is part of a debt reduction strategy under NARCL/IDRCL.
McLeod Russel Sells Corramore Tea Estate for ₹26.16 Crore
McLeod Russel India will sell Corramore Tea Estate for ₹26.16 crore. The company aims to reduce its debt burden through this divestment. ## What just happened McLeod Russel India Limited announced it has signed a Memorandum of Understanding (MoU) with Krishnabehari Tea Co Ltd to sell its Corramore Tea Estate. The sale consideration is ₹26.16 crore. ## Why this matters This sale is a strategic move by McLeod Russel to manage and reduce its debt. The proceeds are earmarked for part-payment of the company's outstanding debt, as facilitated by the National Asset Reconstruction Company Limited (NARCL) and India Debt Resolution Company Limited (IDRCL). ## The backstory McLeod Russel is undergoing a debt restructuring process guided by NARCL/IDRCL. The Corramore Tea Estate accounted for approximately 1.80% of the company's total turnover in FY 2025-26, contributing ₹17.44 crore. ## What changes now The transaction is expected to be completed by October 31, 2026. The sale is subject to due diligence, necessary approvals, and importantly, shareholder approval. The buyer, Krishnabehari Tea Co Ltd, is not a related party. ## Risks to watch Key risks include the successful completion of due diligence, obtaining all necessary regulatory and shareholder approvals within the stipulated timeline, and meeting the October 2026 target completion date. ## Peer comparison Information on peer asset sales is not detailed in this filing. ## Context metrics (time-bound) The Corramore Tea Estate generated ₹17.44 crore in turnover for FY 2025-26. The sale consideration is ₹26.16 crore. ## What to track next Investors should closely follow the progress on securing shareholder approval and the finalization of the deal by the October 31, 2026 deadline.
