Reliance Capital Partners, a part of the Anil Dhirubhai Ambani Group (ADAG), has bought 14.55 per cent stake in Maxwell Industries, the maker of VIP and Lovable brands of innerwear, for Rs 45 crore. |
The investment was a made at a price of Rs 31.65 per share and values the company at over Rs 300 crore. The acquisition was done through preferential allotment of a mix of equity and optionally convertible preference shares. |
City-based Singhi & Associates was advisor for the deal. |
In a consolidation move, Maxwell had purchased the manufacturing assets of group entities "� Hybo Hindustan and Gomma Industries. |
It had also merged two other group companies with itself - Microtex India, which manufactures the Live-in brand of apparels, and Lovable Lingerie, maker of Lovable and Daisy Dee brands. Post-consolidation, the group's 40 brands will come under Maxwell's fold. |
The resource raised though Reliance acquisition will be used for the company's Rs 250 crore expansion plan. This includes increase of production capacity, international brand launches and export outsourcing projects. |
The company is also set to ink joint venture and outsourcing agreements with international innerwear brands. Alliances have been concluded with DBA Europe, FILA and Playboy Jeans. |
Among its other plans, Maxwell plans to enter the retail space with its Lovable brand. It is looking at malls to drive its retail plans. |
"Sale of branded goods in these categories of innerwear and lingerie is expected to multiply on the back of increasing fashion consciousness," said sources close to the company. |