Span Divergent Ltd. approves lease capped at Rs 3 lakh monthly

On November 5, 2026, Span Divergent Limited approved a proposed lease of its Ahmedabad property to material subsidiary Dryfruit Factory LLP, with expected rental income capped at Rs 3 lakh a month. The site may support cashew processing or manufacturing, or serve as a commercial office, and the agreement is proposed to be executed by December 31, 2026.

What property is Span Divergent Ltd. leasing to Dryfruit Factory?

Span Divergent Ltd. is leasing the immovable property at 27, Soham Industrial Park, Bareja-Dholka-Mahijada Road, Village Mahijada, Ahmedabad-382425, Gujarat, to Dryfruit Factory LLP. The Board approved the transaction at its November 5, 2026 meeting and authorised Paras Desai, Whole-time Director and Chief Financial Officer, to execute documents and complete the required formalities.

The filing identifies the Mahijada property by location but does not disclose its area. It states that the lease is intended to facilitate Dryfruit Factory's cashew processing or manufacturing operations and/or its use as a commercial office, leaving the final operating configuration subject to terms mutually agreed by the parties before December 31, 2026.

The lease was one of several Board actions disclosed on November 5, 2026. In the same announcement, Span Divergent Ltd. approved an additional Rs 68 lakh corporate guarantee for Dryfruit Factory's HDFC Bank credit facilities, taking the aggregate guarantee to Rs 5.68 crore; the guarantee and lease are separate arrangements involving the same material subsidiary.

How much rent will Span Divergent Ltd. receive from the Ahmedabad lease?

Span Divergent Ltd. expects rental income not exceeding Rs 3 lakh per month from the proposed lease. The disclosed amount is a ceiling rather than a fixed contracted rent because the agreement remains subject to mutually agreed terms and conditions before execution on or before December 31, 2026.

Span Divergent Ltd. said the transaction is expected to generate lease income of up to Rs 3 lakh a month and is not expected to have an adverse impact on its operations or financial position. This is the company's expectation rather than confirmation that rent has begun, since the agreement had not been executed when the Board approved the proposal on November 5, 2026.

For comparison, Span Divergent Ltd.'s standalone other operating income was Rs 16.35 lakh for the quarter ended September 30, 2026, versus Rs 13.45 lakh for the quarter ended June 30, 2026. The Rs 2.90 lakh quarter-on-quarter increase preceded the Board's November 5 lease approval, so it cannot be attributed to the Ahmedabad lease.

The announcement does not disclose lease tenure, rent escalation, security deposit, maintenance obligations or a commencement date. It also does not state annual rent, meaning the Rs 3 lakh monthly figure defines the reported maximum monthly consideration but not the final rent, duration or total value of the agreement.

Why is the Dryfruit Factory lease a related-party transaction?

The Dryfruit Factory lease is a related-party transaction because Dryfruit Factory LLP is a material subsidiary of Span Divergent Ltd. The filing identifies the tenant as a group entity and states that the transaction is being undertaken on an arm's-length basis.

Span Divergent Ltd. said its Audit Committee and Board of Directors approved the arrangement on November 5, 2026. The disclosure does not provide the benchmarking method, comparable rentals or valuation supporting the arm's-length assessment, but it records approval by both governance bodies.

The related-party treatment differs from Span Divergent Ltd.'s proposed sale of its Mumbai property, also announced on November 5, 2026. That sale to Glorious Sales LLP was stated not to be a related-party transaction, with consideration not exceeding Rs 5 crore and completion expected on or before March 31, 2027.

The Ahmedabad arrangement also does not constitute sale or disposal of the whole, or substantially the whole, of an undertaking under Regulation 37A of the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015. Span Divergent Ltd. described it as a lease of immovable property to a material subsidiary rather than a transfer of an operating business or undertaking.

When will the Span Divergent Ltd. lease agreement be completed?

Span Divergent Ltd. expects the lease agreement to be executed on or before December 31, 2026. The deadline is a proposed execution date, and the agreement remains conditional on terms and conditions mutually agreed by Span Divergent Ltd. and Dryfruit Factory.

The Board meeting approving the lease began at 11:15 Indian Standard Time and concluded at 17:00 Indian Standard Time on November 5, 2026. The approval authorises Paras Desai to complete the documentation, but the filing does not confirm a signing date, transfer of possession or the date on which Dryfruit Factory will start using the Ahmedabad property.

Dryfruit Factory's disclosed use includes cashew processing or manufacturing and commercial-office operations, but the filing does not specify which activity will begin first. It also provides no planned processing capacity, machinery expenditure, employee additions or cashew output for the Mahijada location, making agreement execution the immediate disclosed milestone.

The company described the rent as expected income of up to Rs 3 lakh a month rather than reporting lease revenue for the quarter ended September 30, 2026. The timing separates the reported quarter from the proposed transaction, because Board approval came after the September quarter closed and contractual documentation was still planned by December 31, 2026.

Conclusion

The proposed arrangement gives Dryfruit Factory access to a Mahijada, Ahmedabad property for processing, manufacturing or office use while establishing a prospective rental-income stream for Span Divergent Ltd. capped at Rs 3 lakh a month. It is a related-party transaction due to Dryfruit Factory's status as a material subsidiary, and Span Divergent Ltd. said it received Audit Committee and Board approval on an arm's-length basis.

The next disclosed event is execution of the agreement on or before December 31, 2026. The filing leaves the final monthly rent within the Rs 3 lakh cap, lease duration, selected use of the site and commencement of rental income unresolved, while Dryfruit Factory's HDFC Bank corporate guarantee stands at Rs 5.68 crore after the separate Rs 68 lakh enhancement.