Spentex merges with Indo Rama Textiles

NEW DELHI: Spentex Industries, India’s largest yarn manufacturer, has announced the merger of Indo Rama Textiles with itself. The merger ratio has been fixed at 10:9, i.e. for every 10 shares of Indo Rama Textiles, the shareholder will get 9 shares of Spentex Industries. This is pursuant to the acquisition of 49.03% stake in Indo Rama Textiles by Spentex in May last year which took its total equity holding in Indo Rama Textile to 84.02%.

Earlier, Spentex had acquired 14.99% stake in Indo Rama Textiles through the market and enhanced its stake by 20% acquired through an open offer to the shareholders. The merger of the two companies has been approved by the Delhi High Court. As per the scheme of amalgamation, the appointed date is April 1, 2006.

Currently, Spentex has eight manufacturing plants-- six in India and two in Uzbekistan. It has a production capacity of 3.5 lakh spindles in India and 2.2 lakh spindles in Uzbekistan along with 236 airjet weaving looms. It has recently expanded the capacity of its plant located at Baramati and Sholapur.