RSWM Limited Executes Joint Venture Agreement with NDS9 to Establish Denim Garment Facility
RSWM Limited has finalized a Joint Venture (JV) Agreement with NDS9 Private Limited aimed at establishing a denim garment facility. The agreement formalizes the collaboration for the new project, which is estimated to cost approximately ₹186.30 crore.The partnership outlines specific shareholding and capital commitments between RSWM and NDS9. RSWM Limited will hold 74% of the proposed venture company shares, while NDS9 Private Limited will retain the remaining 26%.
The initial paid up share capital of the joint venture company is set at ₹1.00 crore, corresponding to 10,00,000 equity shares, each with a face value of ₹10/-.
To meet this structure, RSWM Limited has committed to subscribe for 7,40,000 equity shares valued at ₹10/- each, totaling ₹74.00 lakh. NDS9 Private Limited will contribute 2,60,000 equity shares of ₹10/- each, amounting to ₹26.00 lakh.
The total project cost of approximately ₹186.30 crore is planned to be funded through a combination of equity contribution and term loans in the ratio of 30% and 70%, respectively. The final structure may be adjusted based on the stipulations set by the term lenders.
A summary of the financial commitments for the JV company:
| Component | RSWM Limited Contribution | NDS9 Private Limited Contribution | Total/Project Details |
|---|---|---|---|
| Equity Shareholding % | 74% | 26% | 100% |
| Shares Subscribed (Equity) | 7,40,000 shares | 2,60,000 shares | Total: 10,00,000 shares |
| Equity Value Contribution | ₹74.00 lakh | ₹26.00 lakh | JV Capital: ₹1.00 crore |
The proposed joint venture company is currently undergoing the incorporation process. RSWM Limited has confirmed that all requisite disclosures regarding this joint venture have been previously provided in relation to its setting up.
RSWM Stock Price Movement
As of 1:31 PM, RSWM Limited shares are shedding value in live trading, dipping 0.88% to trade at ₹203.50. The equity has seen a volume of 21,020 shares traded so far today.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.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.