S Kumars to invest up to Rs 2,000 crore in holding company

MUMBAI: Eyeing to expand its presence in the global market textiles major S Kumars Nationwide on Thursday said it will invest up to Rs 2000 crore in its holding company SKNL International Limited.

The company would seek approval from its shareholders for investing up to Rs 2,000 crore in its holding company SKNL International, which would act as an acquisition vehicle, the company said in a filing to the Bombay Stock Exchange.

SKNL International would be domiciled in Netherlands because of the tax efficient jurisdiction that the country enjoys, the company added.

"There are potential acquisition opportunities in Europe and North America and aiming to accomplish these acquisitions, the company would be setting up a holding company SKNL International Ltd," the filing said.

The board has requested the shareholders to pass resolution through postal ballot for the proposed investment in SKNL International, S Kumars added.

It is proposed that the investments would be made out of surplus funds or internal accruals and other sources to achieve long-term strategic and business objectives.

"There are potential acquisition opportunities in Europe and North America, which are currently being examined by the company," S Kumars said adding that it has decided to pursue potential targets.

As per Section 372A of the Companies Act, the board of directors of a company can make loan or investment of either sixty per cent of the aggregate paid up capital and free reserves or hundred per cent of the free reserves, whichever is more, subject to shareholders approval.