Indian Card Clothing spurts ~5% on acquisition of further 40% stake in Garnett Wire

28 Jun 2022 , 11:00 AM

Indian Card Clothing Company Limited informed that the board of directors of the company has considered and approved the proposal of acquiring the balance 40% stake in Garnett Wire Ltd., UK — a foreign subsidiary of the Company, from its Joint Venture Partner — Joseph Sellers & Son Limited.

Garnett Wire Limited, UK is a foreign subsidiary of the company in which the company has retained a 60% stake since 1997. It manufactures metallic card clothing and provides quality carding solutions to the global textile industry.

Given Garnett Wire’s presence in the UK and neighbouring regions, the goal of the acquisition is to expand business for the Company’s products abroad.

The parties have mutually agreed on a cost of acquisition of £2,32,873 or such other cost of acquisition as determined by the Independent Valuer/Chartered Accountant.

At around 11.02 AM, Indian Card Clothing Company was trading at Rs288 up by Rs14.2 or 5.19% from its previous closing of Rs273.80 on the BSE. The scrip opened at Rs283.10 and has touched intraday high and low of Rs294 and Rs276 respectively.