Fermenta approves slump sale of environmental business to wholly owned subsidiary; shares fall 2.5%

The decline in the share price comes after the company’s Board of Directors approved the sale of its environmental solutions business operations to a wholly owned subsidiary, Fermenta Environment Solutions Private Limited (FESPL), on a slump sale basis. The transfer will take effect from October 1, 2025.

Under the arrangement, FESPL will carry forward and expand the environmental solutions business. The subsidiary’s portfolio will cover, but not be limited to, solid waste management; wastewater and water management; lake and pond bioremediation; fly ash handling; ground and soil remediation; oil sludge treatment; and air pollution management.

It will also undertake the installation, operation and maintenance of sewage treatment plants (STPs), water treatment plants (WTPs) and effluent treatment plants (ETPs), either independently or through strategic collaborations.

Commenting on the development, Prashant Nagre - Managing Director said, "By transferring our environmental solutions portfolio to a dedicated subsidiary, we are creating a focused entity that can accelerate growth and innovation in this critical sector. This structured approach will enable specialized management, enhanced operational efficiency, and targeted resource allocation at both parent and subsidiary levels.”

“The transaction reflects Fermenta’s commitment to applying our decades-honed capabilities to address critical environmental challenges while creating long-term value for all stakeholders. This strategic move perfectly complements our core business and reinforces our strategy of sustainable innovation that benefits both business and society," he further added.

The company said the move combines its scientific know-how with sustainable practices, helping the subsidiary address environmental challenges. It also fits with Fermenta’s vision of using its expertise to create solutions that support both business and society.

As of 3:04 pm, Fermenta Biotech shares traded 2.34% lower at ₹334.50 apiece on the BSE.

In the last five trading sessions, the shares have declined 9.45%. Over the past month, the shares dropped 3.25%. The scrip, however, zoomed 32.75% in the last six months.

The stock’s 52-week-high level is ₹449, while its 52-week low is ₹219. The company’s market capitalisation stands at ₹982.99 crore as recorded on the Bombay Stock Exchange (BSE) as on September 19.