Premji acquires 1% stake in Koutons Retails

Azim Premji, chairman of Bangalore-based software giant Wipro, has acquired nearly one per cent stake in apparel manufacturer Koutons Retail.

"The acquisition by Azim Premji was because of the fact that in the retail sector Koutons, with the largest chain of stores, is growing very fast," Koutons Retail India Chief Financial Officer Ajay Mahajan told PTI.

The total number of out standing shares of the company is 3,05,51,397 shares, out of that Azim Premji has bought 2,96,402 shares, which amounts to less than 1 per cent (about 0.97 per cent) of the total out standing shares of the company, Koutons Retail said in a filing to the Bombay Stock Exchange. (BSE)

Pointing out that the said acquisition is not a new one, Mahajan said, "Some 3-4 months back Premji acquired around one per cent stake in the company at the prevailing share price at that time".

Shares of Koutons were trading within the range of Rs 960 to Rs 1,006 on the BSE. Market capitalisation of Koutons as on April 23, was Rs 2,400 crore, the company added.

Earlier in 2005, Premji had acquired a 3.76 per cent stake in another textile firm Himatsingka Seide for Rs 108.80 crore. Premji had bought 800,000 shares of the silk yarn and fabrics maker at Rs 136 a share from Arsaig Partners Asia Pte in a block deal.

The company had raised over Rs 100 crore from its recently concluded IPO. Shares of the company closed at Rs 770.05, down 2.30 per cent on BSE.