Malwa Ind acquires 2 denim cos in Jordan, Italy for $10 mn
Mumbai, May 10 (UNI) Malwa Industries Ltd, the Ludhiana-based vertically integrated denim solutions provider, has made two overseas acquisitions in Jordan and Italy involving a total consideration of US 10 million dollars.
Announcing this, Malwa Industries Chief Executive Officer and Managing Director Rishi Oswal said the company has acquired 100 per cent equity of Third Dimension Apparels in Jordan, which has duty free access to US and Europe for a consideration of USD 6 million.
He said the company has also acquired a majority stake (80 per cent) in Emmetre Tintolavanderie Industriali S.r.l of Italy for USD 3.2 million with a proposal to buy out the remainig 20 per cent equity later for another USD 0.8 million.
Replying to a query on funding of the acquisition, Mr Oswal said it would be done through a combination of debt and equity.
Third Dimension Apparels has been involved in the manufacture of denim garments for leading international brands, while the Italian company has been involved in dyeing and finishing of garments, including denim garments for fashion labels in Europe, he elaborated.
''Our acquisition of Third Dimension, an entity that has been servicing orders from leading denim brands, has given us a strategic foothold in a garment manufacturing location with duty-free access to the U S and European markets,'' he said.
Apart from the acquisition, he said the company has also announced a series of strategic initiatives including a complete vertical integration and expansion-cum-modernisation drive at its denim fabric manufacturing plant in India.
Currently, the company has a capacity of 20 million metres of denim fabrics and 8.5 million pieces of denim garments, he informed.
The company has also filed its draft red herring prospectus with Securities and Exchange Board of India (SEBI) to enter the capital market with a proposed initial public offering of 20 million equity shares of Rs 10 each for cash at a premium to be decided through a book-building process. Post-IPO, the promoters stake in the company would come down to 60 per cent from the existing 95 per cent.
The objective of the issue is to part-finance its expansion project which would double its denim fabric manufacturing capacity from the present 20 million meters to 40 million meters per annum and pre-payment of debt.
The book-running lead managers for the issue are DSP Merrill Lynch Ltd, Kotak Mahindra Capital Ltd and Yes Bank Ltd.
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