RIL’s stake buying exercise in Genesis Colors’ in full-swing

MUMBAI | RAJKOT – In a regulatory filing submitted to the exchanges by Reliance Industries Ltd, the company said of its  subsidiary brands arm Reliance Brands Ltd having acquired additional 22.18% stake in Genesis Colors Ltd for 931.6 million (~93.16 crore) rupees, further raising the stake from 11.65% to 33.83%.

This is to inform that Reliance Brands Limited, a subsidiary of the Company, has purchased an additional 22.18% equity stake in Genesis Colors Limited (GCL) for about Rs. 93.16 crore, taking its total stake in GCL to 33.83%, the filing read.

Announcement from Reliance Industries hit the exchange exactly after 10 days of the earlier announcement made on August 02, 2018 of the company having bought 2.36% stake paying 90.9 million (~9.89 crore) rupees, further raising stake to 11.65%.


Exactly after 11 days of earlier announcement, RIL hikes additional 2.36% equity in Genesis Colors


WHAT IS GCL ALL ABOUT?

GCL was incorporated in November, 1998 and is in the business of retailing and wholesale of branded readymade garments, bags, footwear and accessories directly and through its subsidiary/Joint ventures.

GCL belongs to a similar industry as Reliance Brands Limited.

This acquisition will add to the existing portfolio of branded fashion retail outlets.

GCL’s annual turnover details of last 3 fiscals …

  • In FY 2017-18 : 860.2 million (~86.02 crore) rupees (provisional).
  • In FY 2016-17 : 800.4 million (~80.04 crore) rupees
  • In FY 2015-16 : 1.14 billion (~114.16 crore) rupees

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

The investment does not fall within related party transaction and none of RIL’s promoter / promoter group / group companies have interest in GCL.


Announcement from RIL had hit the exchanges on Saturday evening when trading session on bourses in India was shut over a weekend holiday, so it will be indeed interesting to see, as to how investors & traders react to the development and what sort of impact will it make on the RIL share prices on Indian Bourses, when trading session re-opens on Monday.


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