S Kumars gets Rs 900 cr equity infusion from Singaporean firm
Singapore-based GIC Special Investments will invest Rs 900 crore in Reid & Taylor (India) Ltd, a subsidiary of S Kumars Nationwide, a move that will help the textile major strengthen its position in the luxury fabric and apparel segment.
By PTI |
MUMBAI: Singapore-based GIC Special Investments will invest Rs 900 crore in Reid & Taylor (India) Ltd, a subsidiary of S Kumars Nationwide, a move that will help the textile major strengthen its position in the luxury fabric and apparel segment.
"The transaction provides us with significant opportunity not only to expand the Reid & Taylor business but also offers us a chance to execute several plans that we have in mind," S Kumars Nationwide Managing Director and Vice Chairman Nitin S Kasliwal said.
GIC Special Investments (GIC SI) would invest Rs 900 crore in Reid & Taylor through a fresh issue of shares and warrants. Pursuant to which, GIC SI would acquire up to 25.4 per cent stake in Reid & Taylor (India), while the balance 74.6 per cent stake would remain with S Kumars Nationwide.
"We plan to utilise the proceeds of the transaction for enhancing manufacturing capacity, introducing new operating lines, including adding brands that have the potential to further enrich our business portfolio," Kasliwal added.
The proceeds of the investment would also be utilised for upgrading Reid & Taylor (India)'s Mysore facility. The mill has a capacity of 8,40,000 meters, and the capacity would be enhanced to 1,340,000 meters per annum.
The transaction valued Reid & Taylor (India) at Rs 3,540 crore.
Out of the Rs 900 crore, about Rs 790 crore would be received as equity at the commencement of transaction itself and the remaining Rs 110 crore would be in the form of warrants, to be converted into equity shares of Rs 695.18 each within 36 months.
Shares of S Kumars Nationwide were trading at Rs 71.30, down 7.76 per cent on the BSE in morning trade.
"The transaction provides us with significant opportunity not only to expand the Reid & Taylor business but also offers us a chance to execute several plans that we have in mind," S Kumars Nationwide Managing Director and Vice Chairman Nitin S Kasliwal said.
GIC Special Investments (GIC SI) would invest Rs 900 crore in Reid & Taylor through a fresh issue of shares and warrants. Pursuant to which, GIC SI would acquire up to 25.4 per cent stake in Reid & Taylor (India), while the balance 74.6 per cent stake would remain with S Kumars Nationwide.
"We plan to utilise the proceeds of the transaction for enhancing manufacturing capacity, introducing new operating lines, including adding brands that have the potential to further enrich our business portfolio," Kasliwal added.
The proceeds of the investment would also be utilised for upgrading Reid & Taylor (India)'s Mysore facility. The mill has a capacity of 8,40,000 meters, and the capacity would be enhanced to 1,340,000 meters per annum.
The transaction valued Reid & Taylor (India) at Rs 3,540 crore.
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Out of the Rs 900 crore, about Rs 790 crore would be received as equity at the commencement of transaction itself and the remaining Rs 110 crore would be in the form of warrants, to be converted into equity shares of Rs 695.18 each within 36 months.
Shares of S Kumars Nationwide were trading at Rs 71.30, down 7.76 per cent on the BSE in morning trade.
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