Simplex Papers seeks nod to sell land from closed plant
The board wants shareholder approval to dispose of its only material asset — a land parcel in Gondia. No buyer or price yet, but for a ₹4-cr shell with zero revenue, it's the only move that matters.
What's new
- Board approved seeking shareholder nod to sell land at its closed Gondia paper plant.
- Appointed Shrikrushna N. Pawar as additional independent director.
- Re-designated Fatima Fernandes from independent to non-executive director.
Why this matters
Simplex Papers has been operationally inactive for years with zero revenue. This land sale is the first tangible step toward monetizing its only remaining asset. But without a valuation or buyer in sight, it's more a signal of intent than a done deal.
What we're watching
- Whether shareholders approve the sale at the upcoming meeting.
- Any valuation or expression of interest that surfaces before the vote.
- If proceeds from the sale lead to a dividend, buyback, or revival plan.
The full read
Simplex Papers has zero revenue, a market cap of ₹4 crore, and its only material asset is land at a closed paper plant in Gondia, Maharashtra. On Tuesday, the board took the first step to monetise it, seeking shareholder approval to sell or transfer the land. No buyer, no price, no agreement. Just a board resolution. Alongside, it appointed Shrikrushna Pawar as an independent director and moved Fatima Fernandes to a non-executive role, routine governance. For a shell that has been dormant for years, the land sale is the only thing that changes the story. But without a single number attached to the asset, it remains a hope, not a plan.
Questions answered
- Why is Simplex Papers trying to sell land now?
- The company's plant has been closed and it generates zero revenue. The land is its only material asset, and the board sees monetisation as a way to address long-standing operational inactivity.
- What is the land worth?
- The company has not disclosed any valuation or reserve price. No buyer has been identified, and no agreement has been signed.
- What happens if shareholders approve the sale?
- The board can then proceed to find a buyer and negotiate terms. Any final sale would require further board approval and likely another shareholder nod, depending on the value.
- Who are the new directors appointed?
- Shrikrushna N. Pawar has been appointed as an additional independent director. Fatima Fernandes has been re-designated from independent to non-executive director.