Reliance Petroleum Retail to acquire Shubhalakshmi Polyesters for Rs 1,522 crore
SPL has a continuous polymerisation capacity of 2,52,000 million tonnes per annum and manufactures polyester fibre, yarns and textile grade chips through direct polymerisation route as well as extruder spinning with value addition through texturis...
Reliance Petroleum Retail Limited, a wholly owned subsidiary of Reliance Industries Ltd (RIL), will acquire the polyester business of Shubhalakshmi Polyesters Limited (SPL) and Shubhlaxmi Polytex Limited (SPTex) for cash consideration of Rs. 1,522 crore and Rs. 70 crore respectively, aggregating to Rs. 1,592 crore by way of slump sale on a going concern basis, the company said in a exchange filing late Friday evening.
The acquisitions are part of the company’s strategy to expand its downstream polyester business.
"The acquisitions are subject to approval of the Competition Commission of India and the respective lenders of SPL and SPTex," the company said.
On Friday, RIL's scrip ended at Rs 2568.60, down 0.64% on the BSE.
SPL has a continuous polymerisation capacity of 2,52,000 million tonnes per annum and manufactures polyester fibre, yarns and textile grade chips through direct polymerisation route as well as extruder spinning with value addition through texturising.
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It has two manufacturing facilities situated at Dahej (Gujarat) and Silvassa (Dadra and Nagar Haveli). SPTex has a texturised yarn manufacturing facility at Dahej.
The turnover of SPL for FY 2019, FY 2020 and FY 2021 was Rs. 2,702.50 crore, Rs. 2,249.08 crore and Rs. 1,768.39 crore, respectively. Turnover of SPTex for FY 2019, FY 2020 and FY 2021 was Rs. 337.02 crore, Rs. 338.00 crore and Rs. 267.40 crore, respectively.
"The above transactions do not fall within the related party transactions and none of the company’s promoter or promoter group or group companies have any interest in the above entities," RIL said in a press statement.
