RIL’s stake in Genesis Colors now at 46.39%

MUMBAI | RAJKOT – In a regulatory filing submitted to the exchanges late night on Tuesday, Reliance Industries Ltd said of having acquired additional 12.56% equity in Genesis Colors Ltd via its brands subsidiary Reliance Brands Ltd paying 527.7 million (~52.77 crore) rupees, further stake in Genesis at 46.39% from 33.83% as announced just 3 days earlier on August 11, 2018 – Saturday.

This is to inform that Reliance Brands Limited, a subsidiary of the Company, has purchased an additional 12.56% equity shareholding in Genesis Colors Limited (GCL) for about Rs. 52.77 crore, taking its total stake in GCL to 46.39%, the filing read.

It seems the company is going aggressive on stake buying spree of Genesis Colors Ltd, as the announcement of acquiring additional 12.56% equity comes exactly after 3 days, prior to an earlier announcement made on August 11, 2018 – Saturday.

In just 22 days the company has acquired 45.24% stake in Genesis Colors Ltd raising its stake from 1.15% to 46.39%.


DATELINE OF STAKE BUYING IN GENESIS BY RIL

  • On July 21, 2018 – Saturday : Announcement on BSE of buying additional 8.14% stake in GCL for 341.7 million rupees
  • On July 23, 2018 – Monday : Announcement on NSE of buying additional 8.14%  stake in GCL for 341.7 million rupees

RIL subsidiary Reliance Brands pays 341.7 million rupees, to buy additional 8.14% stake in Genesis Colors


  • On August 02, 2018 – Thursday : Announcement on BSE of buying additional 2.36% stake in GCL for 90.9 million rupees
  • On August 03, 2018 – Friday : Announcement on NSE of buying additional 2.36% stake in GCL for 90.9 million rupees

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


  • On August 11, 2108 – Saturday : Announcement on BSE|NSE of buying additional 22.18% stake in GCL for 931.6 million rupees

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


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.


However, the announcement of RIL increasing stake in Genesis Colors hit the exchanges late night on Tuesday – August 14, 2018, after the trading session for the day had ended and following day on Wednesday – August 15, 2018 being a National Holiday on occassion of Independence Day, bourses in India are not functioning on Wednesday.

So, it will be indeed interesting to see, how investors & traders are reacting to the development and what sort of impact of the announcement is felt on the share price of Reliance Industries, when Bourses in India re-open for the trading session on Thursday – August 16, 2018.


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