Spentex takes over Indo Rama textiles

Hyderabad, May 25 (UNI) Spentex Industries Limited (SPENTEX), a part of CLC Group with interests in textiles and power, has acquired the management control of Indo Rama Textiles Ltd.(IRTL).

According to a press release here SPENTEX has acquired 49.03% 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%.

This follows SPENTEX's acuisition of 14.99% of IRTL's equity through stock exchange mechanism and 20% through open offer made by it to shareholders of IRTL.

The total cost of the entire acquisition was Rs 220.44 crore and was the largest in the spinning space. ICICI securities was the strategic financial advisor on the transaction. IRTL has been a part of the O P Lohia Group, which owns Indo Rama Synthetics Limited, the second largest polyester manufacturer in the country.

Indo Rama Textiles Limited produces synthetic blended yarns. The company has two state-of-the- art plants at Pithampur in Indore and Butibori in Nagpur. The two plants produce about 40,000 mt of yarns in blends, polyster-cotton, polyster-viscose, 100% polyster and 100% viscose.

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