Spentex to buy 50% stake in Indo Rama Textiles

The board of directors of Spentex Industries today approved a proposal to acquire, through a buy-out, up to 50% of the fully paid-up equity share capital of Indo Rama Textiles from existing promoters.

According to a release issued by Spentex to the BSE today, the acquisition would be in addition to 14.99% already owned by the company.

"Indo Rama Textiles, which is engaged in spinning synthetic blended yarns, has two state-of-the-art plants at Pithampur (Indore) and Butibori (Nagpur). The acquisition would gear-up the company into one of the top yarn manufacturing companies in the country," the release added.

The board also authorised managing director Mukund Choudhary and Kapil Choudhary, director (marketing) to negotiate and finalise the terms and conditions of the share purchase agreement and execute the same on behalf of the company, the release added.