Fabino Enterprises Divests Subsidiary Stake

Fabino Enterprises has offloaded its 99.998% stake in Upender Metaplast Private Limited for Rs 5 lakh.

Reader Takeaway: Divestment removes a loss-making entity; focus shifts to new opportunities, though related-party transaction demands scrutiny.

What just happened

Fabino Enterprises finalized the sale of 50,000 equity shares in Upender Metaplast to Mr. Atul Jain and Mrs. Vandana Jain. Mrs. Vandana Jain serves as a Director on the Fabino board, classifying the deal as a related-party transaction. The total cash consideration is Rs 5,00,000.

Why this matters

The subsidiary, Upender Metaplast, has been a drag on resources, reporting nil turnover and a net loss of Rs 7.13 lakh for FY 2025-26. With a negative net worth of Rs 3.42 lakh and liabilities exceeding assets, the divestment allows Fabino to clean up its balance sheet and pivot toward more profitable ventures.

Board and Governance Updates

Beyond the divestment, the Board approved the re-appointment of Mrs. Tesu Alakh as a Non-executive Independent Director starting September 29, 2026. Furthermore, M/s D G M S & Co. will continue as statutory auditors for a five-year term ending in FY 2030-31. The board also set the stage for the 15th Annual General Meeting by approving the draft notice and appointing a scrutinizer.

Risks to watch

As this is a related-party transaction, investors should verify that the sale price meets arm's-length pricing standards. Regulatory filings regarding audit committee approval for such transactions will be key indicators of governance health.

What to track next

Watch for the company's announcements regarding new capital allocation and the specific "viable projects" management intends to pursue following this divestment.