Spentex Takes over Indo Rama Textiles

New Delhi, May 24 (UNI) Spentex Industries Ltd today announced acquiring the management control of Indo Rama Textiles Ltd (IRTL) at Rs 220.44 crore and that they are in the process of some acquisitions in Uzbekistan and Egypt.

''We have acquired 49.03 per cent equity of IRTL, representing the promoter's holding at a price of Rs 84.15 taking Spentex's total stake in the company to 84.02 per cent,'' Spentex Industries Managing Director Mukund Choudhury said today.

This follows after Spentex acquired 14.99 per cent of IRTL's equity through stock exchange mechanism and 20 per cent open offer made by it to shareholders of IRTL, said a Spentex release.

''ICICI securities was the strategic financial advisor in the transaction. Spentex which was earlier dealing only with cotton fibres plans to merge with IRTL which had been was engaged in spinning of synthetic blended yarns,'' Mukund Choudhury added.

The entire board of directors of Indo Rama Textiles has been dissolved and the newly appointed nominees for the IRTL board are Mukund Choudhury, Kapil Choudhury, Amrit Aggarwal, SC Grover, SP Setia, the release added.

IRTL has two state of the art plants at Pithampura (Indore) and Butibori (Nagpur). The two plants produce nearly Rs 40,000 MT of yarns in blends, polyester/cotton, polyester /viscose.

Spentex said that it is also investing Rs 120 crore to increase it's cotton yarn capacity by 36,000 spindles at it's facility in Baramati.

UNI ARB MP PM1848