Filatex Fashions to acquire 51% stake for US $7.55 million in Isabella

30 Nov 2022 , 02:13 PM

Filatex Fashions Limited informed that it is considering the acquisition of a 51% stake in Sri Lankan apparel manufacturing company Isabella (Private) Ltd. for an estimated consideration of $7.55 million (approx. Rs 60.40 crore).

This acquisition will enable Filatex to have access to some European Markets where Isabella has operations.

To help fund the acquisition, the company will issue preference shares. It plans to use internal accruals to meet the total fund requirements.

The company was in the process of increasing its capacity from 7 million to 30 million socks per year. It is planning to infuse about Rs350 crore in its expansion plans, which also includes foraying into tracksuits and t-shirts.

The company also unveiled its plans to import 500 machines for its socks business.

At around 2.16 PM, Filatex Fashions was trading at Rs24.30 down by Rs0.3 or 1.22% from its previous closing of Rs24.60 on the BSE. The scrip touched intraday high and low of Rs25 and Rs23.70 respectively.

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