NHC Foods signs LOI to acquire Agriconnect Solutions, a Rs 117.57 cr agri trading firm

What NHC Foods announced

On 2 July 2026, the Board of Directors of NHC Foods Ltd (BSE: 517554) approved and signed a Letter of Intent (LOI) for the proposed investment in and acquisition of M/s. Agriconnect Solutions Private Limited. The LOI marks the first formal step towards integrating Agriconnect’s agri‑commodity supply and trading operations with NHC Foods’ existing food‑processing business. The filing, made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements, does not disclose the purchase price, shareholding percentage or the exact mode of consideration, stating that these will be finalised after a valuation by an independent valuer.

Details of the target entity

Agriconnect Solutions Private Limited was incorporated in India on 22 March 2021 and is registered with the Registrar of Companies, Mumbai. The company operates in the Supply & Trading of Agri commodities sector. Its capital structure comprises an authorized and paid‑up share capital of Rs 50 lakh each.

Financial highlights disclosed in the LOI annexure are as follows:

• Turnover: Rs 117.57 cr for FY 2024‑25 (audited). The company’s turnover peaked at Rs 360.80 cr in FY 2023‑24 and was Rs 234.64 cr in FY 2022‑23.
• Profit After Tax (PAT): Rs 2.89 lakh in FY 2024‑25, compared with a peak PAT of Rs 31.25 lakh in FY 2023‑24.
• The business has been profitable since incorporation and has completed four full years of operations by the time of the LOI.

No promoter or promoter‑group interest in Agriconnect is reported, confirming that the transaction does not qualify as a related‑party transaction under SEBI regulations.

Proposed acquisition terms and timeline

The LOI outlines the broad framework of the deal but leaves several material terms to be determined:

• Consideration: The filing states that the nature of consideration—whether cash, share swap or a combination—will be ascertained after a valuation report is obtained from an independent valuer post‑due‑diligence.
• Price and shareholding: No specific acquisition price, percentage of shareholding or number of shares to be acquired is disclosed at this stage.
• Regulatory approvals: The annexure confirms that no governmental or regulatory approvals are required for the acquisition.
• Completion timeline: The parties intend to complete the necessary due‑diligence and move towards a definitive agreement within three months of the LOI date, i.e., by early October 2026.
• Synergy rationale: The board believes that Agriconnect’s procurement and distribution capabilities will add synergy to NHC Foods’ existing operations and that the target’s positive cash‑flows will strengthen NHC Foods’ financial position. Additionally, NHC Foods plans to provide working capital to Agriconnect to support further expansion.

Key facts at a glance

Why this matters for investors

The LOI signals NHC Foods’ strategic intent to diversify into the agri‑commodity supply chain, a segment that complements its existing food‑processing activities. By acquiring a business that has demonstrated profitability and sizable turnover, NHC Foods may enhance its revenue base and improve cash‑flow stability. However, because the consideration, share dilution and exact ownership percentage remain undisclosed, investors cannot yet assess the immediate impact on the company’s capital structure. The absence of required regulatory clearances suggests a smoother approval process, but the transaction is still contingent on satisfactory due‑diligence and a valuation outcome. Until a definitive agreement is signed, the acquisition remains a conditional proposal.

Conclusion

NHC Foods Ltd has formally expressed its intention to acquire Agriconnect Solutions Private Limited through a signed LOI, outlining a three‑month window for due‑diligence and valuation. The target’s audited FY25 turnover of Rs 117.57 cr and its profitable track record provide a clear rationale for the proposed synergy. Final deal terms, including price and shareholding, will be disclosed after the valuation process. Investors should monitor subsequent filings for the definitive agreement and any material changes to the transaction’s structure.

The acquisition is expected to be completed within three months, subject to satisfactory due‑diligence and valuation, as per the LOI dated 2 July 2026.