Hindustan Media Ventures has announced its decision to invest Rs 11,99,33,112 in DSM Fresh Foods, operating under the brand name Zappfresh. The investment is scheduled to be completed between 1st and 31st December 2023.
According to unaudited financial reports, Zappfresh recorded annual turnovers of Rs 49,84,47,774 in FY 21, Rs 56,42,85,952 in FY 22, and Rs 56,28,38,600 in FY 23. The investment is not deemed a related party transaction and does not involve any interest from the promoter or group companies.
As part of the agreement, Hindustan Media Ventures will acquire 3.54% of the fully diluted share capital of Zappfresh, equivalent to 807 equity shares priced at Rs 1,48,616 per share. The consideration for the acquisition is a cash payment of Rs 11,99,33,112. Regulatory approvals are not applicable for this acquisition.
The investment in Zappfresh reflects Hindustan Media Ventures' strategic focus on supporting promising companies operating in the rapidly growing online meat product delivery segment (fresh and ready-to-cook/eat).
Hindustan Media Ventures is engaged in the business of publishing Hindustan, a Hindi daily, and Hindi Magazines and undertakes commercial printing jobs. The Company operates in two segments: printing & publishing of newspaper & periodicals and digital.
On a consolidated basis, Hindustan Media Ventures reported net loss of Rs 6.33 crore in Q2 September 2023 as against net loss of Rs 28.32 crore in Q2 September 2022. Net sales declined 6.31% YoY to Rs 164.53 crore in Q2 September 2023.
Shares of Hindustan Media Ventures rose 0.50% to Rs 79 on 20 November 2023.