Deepak Fertilizers subsidiary invests in agritech fund for farmer-centric strategy

Mahadhan AgriTech Limited (MAL), a wholly-owned subsidiary of Deepak Fertilisers And Petrochemicals Corporation Limited, has announced an investment of up to INR 75 crores in SOA FUND – SERIES I. This fund, registered with SEBI as a Category II Alternative Investment Fund, aligns with MAL's strategy to become a comprehensive, farmer-centric agritech player. The investment aims to leverage innovative agri-business models, reduce capital outlay and risk, and generate both financial returns and strategic value.

The investment was approved by MAL's Investment Committee, which also greenlit a contribution agreement. The transaction, classified as an arm's length related party transaction, involves acquiring units of the fund at a face value of INR 1,000 per unit. SOA FUND – SERIES I is sponsored by an individual within the company's promoter group and managed by SCM Commercial Private Limited, also part of the promoter group.

Under the agreement, MAL, as a contributor, can appoint one representative to the Investment Committee, with exclusive rights to change or remove this representative. The contributor also holds rights regarding the appointment of an independent consultant to review the fund's operations if a super-majority of contributors deems it necessary. The trustee can be removed with a super-majority resolution and three months' written notice.