RIL subsidiary shells 92 crore rupees to buy stake in fashion & lifestyle brands

MUMBAI | RAJKOT – Reliance Industries Ltd’s subsidiary companies Reliance Brands Ltd and Reliance Retail Ventures Ltd  have now acquired a combined stake of 65.77% in Genesis Colors Ltd, the company (RIL) said in regulatory filing submitted to the Exchanges in India, on Monday.

Reliance Retail Venture Ltd, subsidiary arm of Reliance Industries Ltd paid 348 million (~34.80 crore) rupees to purchase 16.31% equity holding in Genesis Colors Ltd, the filing read.

Equity brought by Reliance Retail Venture Ltd., is in addition to 49.46% equity holding in GCL held by Reliance Brands Limited (RBL), a subsidiary of RRVL, intimation of which was given vide previous communication dated August 24, 2018, the filing claimed.

Accordingly, the aggregate equity shareholding of RRVL and RBL in GCL stands at 65.77%.

With an intent to strengthen its footage in the retail industry and support its long term strategy to enhance its value in the retail industry, the company has also parked stake in other 5 fashion, lifestyle brands.


ADDITIONAL STAKE BUYING

Alongwith Genesis Colors Ltd, Reliance Industries has also acquired additional stakes in following entities :-

  • Additional 2.07% stake in Genesis Luxury Fashion Pvt Ltd paying 33.7 million (~3.37 crore) rupees,
  • 50% stake in Genesis La Mode Pvt Ltd paying 105.7 million (~10.57 crore) rupees,
  • 50% stake in GML India Fashion Pvt Ltd paying 44.8 million (~4.48 crore) rupees, 
  • 50% stake in GLF Lifestyle Brands Pvt Ltd paying 384.5 million (~38.45 crore) rupees    
  • 50% stake in GLB Body Care Pvt Ltd paying 1.6 million (16 lakh) rupees

FINANCIAL DATA

Genesis Luxury Fashion Pvt Ltd., incorporated in September 2007, is engaged in Retailing and wholesale of branded readymade garments, bags, footwear and accessories directly and through its subsidiary/joint ventures.

Turnover data of Genesis Luxury Fashion Pvt Ltd., is as follows :-

  • FY 2017-18 is Rs. 139.56 crore (provisional)
  • FY 2016-17 is Rs. 161.19 crore
  • FY 2015-16 is Rs. 165.76 crore

Genesis La Mode Pvt Ltd., incorporated in March 2012, is engaged in Retailing and wholesale of branded readymade garments, bags, footwear and accessories.

Last three years – Turnover data of Genesis La Mode Pvt Ltd., is as follows :-

  • FY 2017-18 is Rs. 96.56 crore (provisional)
  • FY 2016-17 is Rs. 79.73 crore
  • FY 2015-16 is Rs. 80.60 crore

GML India Fashion Pvt Ltd., incorporated in December 2012, is engaged in Retailing and wholesale of branded readymade garments, bags, footwear and accessories.

Last three years – Turnover data of GML India Fashion Pvt Ltd., is as follows :-

  • FY 2017-18 is Rs. 26.19 crore (provisional)
  • FY 2016-17 is Rs. 19.36 crore
  • FY 2015-16 is Rs. 3.87 crore

GLF Lifestyle Brands Pvt Ltd., incorporated in July 2011, is engaged in Retailing and wholesale of branded readymade garments, bags, footwear and accessories.

Last three years – Turnover data of GLF Lifestyle Brands Pvt Ltd., is as follows :-

  • FY 2017-18 is Rs. 19.26 crore (provisional)
  • FY 2016-17 is Rs. 5.12 crore
  • FY 2015-16 is Rs. 0.89 crore

GLB Body Care Pvt Ltd., incorporated in May 2012, is engaged in Retailing and wholesale of branded cosmetics and accessories.

Last three years – Turnover data of GLB Body Care Pvt Ltd., is NIL.


The aforesaid acquisitions will help the Company to strengthen its footage in the retail industry and support its long term strategy to enhance its value in the retail industry.

No regulatory approvals were required for the said acquisition of shares.

These investments do not fall within related party transaction and none of RIL’s promoter / promoter group / group companies have interest in these entities.

RIL’s stake in Genesis Colors now at 46.39%


IMPACT ON SHARE PRICE

Announcement from the company dated 8th September 2018 – Saturday had hit the exchanges BSE on Sunday 09th September 2018, whereas on NSE on 10th September 2018, Monday.

However, the announcement did not woo either the investors or traders making any positive impact of the announcement, as the company shares opened in RED Zone after a weekend trading holiday on the India bourses, continued trading on negative counters and closed on negative note, when the trading session ended on the Indian Bourses.


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