RRIL Ltd Plans Acquisition of Up To 29,87,500 Equity Shares in Sumati Spintex Private Limited
RRIL Ltd has approved a strategic acquisition of equity shares in Sumati Spintex Private Limited (SSPL). The company is set to additionally acquire up to 29,87,500 Equity Shares of SSPL from existing shareholders for an amount aggregating up to Rs. 3,11,00,000/- (Rupees Three Crore Eleven Lakhs only).With this acquisition, RRIL Ltd’s total shareholding in Sumati Spintex Private Limited will reach 75%. The purchase involves cash consideration and is intended to further strengthen control for better integration of business activities.
The transaction represents up to 25% of the paid-up capital of Sumati Spintex Private Limited (SSPL). RRIL Ltd confirmed that the acquisition falls within the ambit of Related party transactions, as equity shares are being acquired from Promoters and Promoter Group of the target company, with the transaction conducted on an arms length basis.
The completion timeline for the acquisition has been set up to September 30, 2026. The target entity, Sumati Spintex Private Limited, is a manufacturer in the yarn industry.
Key details regarding the target company and the acquisition are presented below:
| Particulars | Details |
|---|---|
| Target Company | Sumati Spintex Private Limited (Manufacturer of Yarn) |
| Date of Incorporation | 29th March, 2013 |
| Acquisition Consideration | Up to Rs. 3,11,00,000/- |
| Shares Acquired | Upto 29,87,500 Equity Shares at Rs. 10/- each |
| Post-Acquisition Stake | 75% |
| Industry | Manufacturing of Yarn |
Financial Overview of Target Company (Sumati Spintex Private Limited)
The target company has maintained consistent performance across the last three fiscal years:| Fiscal Year | Turnover |
|---|---|
| FY 2025 | Rs. 14,841.82 Lakhs |
| FY 2024 | Rs. 15,062.44 Lakhs |
| FY 2023 | Rs. 141M.62 Lakhs |
The acquisition is aimed at strengthening greater control and facilitating better integration between the two companies.
RRIL Stock Price Movement
On Friday, RRIL Limited shares edged higher, closing at ₹17.50 after gaining 0.58% from its previous close. The stock traded within a range defined by an intraday low of ₹17.30 and settled on a volume of 23,428 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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