Update on acquisition of SNA Milk and Milk Products Limited and DFSU Farmer Connect Private Limited.
M&A
▲ Positive Development
MEDIUM RISK
📅 Filed on BSE: 04 Jul 2026, 09:29 PM IST · BSE ID: 1be5aa46-544a-424a-9bc6-d0a8822bf96d
View Original BSE Filing (PDF)
💡
In Simple Terms
Desi Farms issued new shares to buy majority stakes in SNA Milk and DFSU Farmer Connect, expanding into dairy products.
🤖 AI Summary
- Desi Farms India allotted 2,11,07,790 Equity shares preferentially for acquiring stakes in two entities.
- The allotment facilitates acquiring 71.09% of SNA Milk and Milk Products Limited on a fully diluted basis.
- It also covers acquiring 42.69% of DFSU Farmer Connect Private Limited through a share swap.
- SNA Milk recorded a turnover of ₹33,74,44,514/- for its most recent financial year.
- The acquisitions are related party transactions, executed at arm’s length based on a valuation report.
🔢 Key Numbers — exact figures from BSE filing, not rounded
Equity shares allotted
2,11,07,790 Equity shares
Stake acquired in SNA Milk
71.09%
Stake acquired in DFSU Farmer Connect
42.69%
SNA Milk turnover (most recent FY)
₹33,74,44,514/-
🏢 How This Affects the Company
Desi Farms India enters the milk and milk products and ice cream manufacturing sectors, diversifying its business operations beyond logistics into a consumption-driven industry. This is intended to improve consolidated revenues.
The acquisition via preferential allotment of equity shares for consideration other than cash will increase Desi Farms India's equity base. Operational synergies are anticipated to improve long-term financial performance.
The company will integrate SNA Milk's established production facilities and supply chain, along with DFSU's product development and distribution capabilities, enhancing its overall operational footprint in the dairy sector.
The acquisition is a related party transaction, though stated to be executed at arm’s length based on a registered valuer's report. This introduces integration risks and requires effective management of related party interests.
👥 What This Means For Shareholders
✅
Action Required
No immediate action is required from shareholders as the Board has already approved the share allotment for the acquisition.
👤
Who Is Affected
Shareholders of Desi Farms India Limited will see an increase in the total number of outstanding equity shares due to the preferential allotment, impacting per-share metrics. Shareholders of SNA Milk and DFSU Farmer Connect are receiving Desi Farms shares.
🔍
Management Signal
Management is signaling a strategic shift towards diversification and expansion into the dairy sector through acquisitions, aiming for long-term growth and enhanced consolidated revenues.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
Completion of 100% acquisition of SNA and DFSU, as stated by the company.
Future financial results — examine consolidated revenue and profitability from dairy segments.
Management updates on integration progress and operational synergies from the acquisitions.
MEDIUM RISK
The acquisition involves related party transactions and integration of a newly incorporated entity (DFSU).
💡 Investor Takeaway
Desi Farms India's Board approved the allotment of 2,11,07,790 Equity shares to acquire 71.09% of SNA Milk and 42.69% of DFSU Farmer Connect. SNA Milk had a turnover of ₹33,74,44,514/- for the most recent financial year. All requisite approvals, including BSE and member approval, have been received.
⚖️ Strengths & Concerns
✅ Positives
- Diversification into milk and milk products and ice cream manufacturing provides entry into a stable, consumption-driven sector.
- SNA Milk and Milk Products Limited recorded a turnover of ₹33,74,44,514/- in its most recent financial year, reflecting stable operations.
⚠️ Concerns
- The acquisition of both SNA Milk and DFSU Farmer Connect Private Limited falls under related party transactions.
- DFSU Farmer Connect Private Limited was incorporated on August 27, 2025, indicating a limited operational history.
📅 Company Track Record
Previous filings indicated Desi Farms acquired 12.39% of SNA Milk for ₹37.88 Crores on July 4, 2026, marking an initial entry into the dairy sector. This current filing details further share-swap based acquisitions.
Based on publicly available historical data. For context only.
❓ Frequently Asked Questions
What stake did Desi Farms India acquire in SNA Milk and Milk Products Limited?
Desi Farms India acquired a 71.09% stake in SNA Milk and Milk Products Limited on a fully diluted basis, including 3% Compulsorily Convertible Preference Shares.
What stake did Desi Farms India acquire in DFSU Farmer Connect Private Limited?
Desi Farms India acquired a 42.69% stake in DFSU Farmer Connect Private Limited through a share swap.
How many equity shares did Desi Farms India allot for these acquisitions?
Desi Farms India allotted 2,11,07,790 Equity shares on a preferential basis for consideration other than cash to the shareholders of SNA Milk and DFSU Farmer Connect.
What was the turnover of SNA Milk and Milk Products Limited in its most recent financial year?
SNA Milk and Milk Products Limited recorded a turnover of ₹33,74,44,514/- for its most recent financial year.
Are these acquisitions considered related party transactions for Desi Farms India?
Yes, the acquisitions fall under related party transactions, as Mr. Sunil Kumar Shahi, belonging to the Promoter/Promoter Group of Desi Farms, is a Director/Shareholder of the target entities.
Questions based on this BSE filing only. For information purposes.