B-Right Realestate Limited, a prominent Mumbai-based real estate developer, has executed a major strategic investment transaction concerning its subsidiary company. On 21st April 2025, the company disclosed that it has officially signed both a Share Purchase Agreement (SPA) and an Investor cum Shareholders’ Agreement for the sale of a 60% equity stake in its subsidiary, Farewell Real Estate Private Limited.

This development follows up on an earlier disclosure made by the company on 19th February 2025, underlining the seriousness and the strategic importance of this transaction in the company’s future business roadmap.

Key Details of the Share Purchase Agreement (SPA)

The Share Purchase Agreement has been executed among:

• B-Right Realestate Limited (the "Transferor")

• Yogi Limited (the "Transferee 1")

• Mr. Ghanshyambhai Nanjibhai Patel (the "Transferee 2")

• Mr. Pareshbhai Nanjibhai Patel (the "Transferee 3")

• Farewell Real Estate Private Limited (the “Target Company”)

As per the SPA, a total of 41,46,000 equity shares of ₹10 each, which constitute 60% of the paid-up capital of Farewell Real Estate Private Limited, will be transferred to the buyers. This agreement significantly changes the shareholding structure of the subsidiary, bringing in new strategic investors into the company’s fold.

Details of the Investor cum Shareholders’ Agreement

The Investor cum Shareholders’ Agreement was executed among:

• Yogi Limited (as Investor)

• B-Right Realestate Limited (Promoter 1)

• B-Right Realestate Ventures LLP (Promoter 2)

• Mr. Ghanshyambhai Nanjibhai Patel (Shareholder 1)

• Mr. Pareshbhai Nanjibhai Patel (Shareholder 2)

• Farewell Real Estate Private Limited (the Company)

This agreement outlines the rights, responsibilities, and obligations of all involved parties, particularly in the context of this investment. The focus is to ensure proper governance and operational clarity post-investment.

Purpose of the Investment: SRA Project in Mumbai

The proceeds from this transaction will be deployed towards the development of the Veer Sambhaji Nagar Co-operative Housing Society Limited under the Slum Rehabilitation Authority (SRA) Scheme located at LBS Marg, Mulund (West), Mumbai – 400080.

The project details are as follows:

• Project Area: 18,271.70 sq.mtrs.

• Rehabilitation Component: 57,000.21 sq.mtrs.

• Free Sale Component: 84,645 sq.mtrs.

• Development Norms: DCPR 2034 Guidelines

• Estimated Gross Development Value (GDV): ₹2,000 Crore

This initiative forms part of the broader efforts to redevelop slum clusters in Mumbai while also providing an opportunity for real estate monetization through the free-sale component, which is a key financial driver in SRA projects.

Regulatory Framework and Approvals

The transaction has been undertaken in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

It is, however, important to note that this investment and the implementation of the project are subject to regulatory approvals, as is standard for real estate projects of such scale and public interest. These approvals may include but are not limited to, consent from SRA authorities, municipal corporations, environmental clearances, and building plan sanctions under the DCPR 2034 policy framework.

Strategic Implications

This move represents a strategic divestment by B-Right Realestate Limited, allowing the company to unlock value from its subsidiary while ensuring the subsidiary receives the necessary capital and support to implement a large-scale redevelopment project.

The entry of Yogi Limited and other investors signals strong confidence in the Mumbai SRA redevelopment model, especially given the high developmental value and significant free-sale potential of the Mulund project.

Furthermore, such investments are aligned with the Government of Maharashtra’s urban renewal goals, aiming to replace dilapidated housing with modern residential infrastructure while improving the lives of thousands of slum dwellers.

Conclusion

The execution of the Share Purchase and Investor Agreements marks a milestone transaction for B-Right Realestate Limited and underscores the growing investor appetite for urban redevelopment projects in Mumbai. By offloading a significant stake in its subsidiary and bringing onboard seasoned investors, B-Right Realestate is well-positioned to contribute to and benefit from the burgeoning demand in Mumbai’s real estate market, particularly in the SRA segment.

As the Mulund SRA project progresses through its approval and development phases, it is expected to add significant value to all stakeholders involved — the promoters, the new investors, residents of the slum clusters, and the real estate ecosystem at large.

The stock market and investors will be closely watching the impact of this transaction on B-Right Realestate Limited's financials, project execution capabilities, and future real estate initiatives.

For continued updates, stakeholders are advised to monitor the company’s official communications and BSE filings.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.