RSWM Ltd to acquire Ginni Filaments Ltd's assets at Kosi, UP

RSWM Ltd. (BSE: 500350/NSE: RSWM), one of the largest manufacturers and exporters of value-added synthetic, mélange, blended spun yarns, denim fabric, knitted fabric, and green polyester fibers from India, today has signed a binding term sheet with Ginni Filaments Limited for proposed acquisition of its Spinning, Knitting and Processing Undertaking situated at Mathura on Slump Sale basis at an enterprise value of INR 160 crs which is expected to be completed within ninety days of execution of term sheet subject to execution of definitive documents and receipt of necessary approvals. This acquisition is expected to result in an increase in turnover, employee strength, and plant capacity thereby marking a pivotal moment for RSWM Limited and will establish them as market leaders.

Commenting on this strategic proposed acquisition: Mr. B M Sharma, Joint managing director of RSWM Limited said, "The acquisition broadens RSWM's reach, making it a significant player in Spinning and Knit Fabric sector by strengthening its production capacity. This may also lead to enhancement in yarn production capacity of RSWM. RSWM Limited has planned to make substantial investment in the modernization of the acquired assets, introducing cutting-edge technologies such as the latest generation compact ring frames and advanced carding and comber machines including power infrastructure. This move is aimed at enhanced recoveries, productivities, and product diversity to cater to premium clients."

Mr. Riju Jhunjhunwala, Chairman & Managing Director, and CEO of RSWM Limited said, "RSWM Limited is pleased to announce a significant move in the textile industry with its proposed acquisition of Spinning, Knitting and Processing units of Ginni Filaments Limited situated at 110KM Stone, Delhi -Mathura Road, Chhata, Kosi District: Mathura (UP)-281401. Going beyond Rajasthan, this expansion foresees a substantial increase in turnover. Targeting new customers globally, RSWM Limited aims to strengthen its position in spinning and knitted fabric sector. With a strategic investment in upgrading acquired assets, RSWM Limited focuses on operational efficiency and eco-friendly practices. This move enhances financial stability and anticipates improved earnings. RSWM Limited expresses gratitude to shareholders for their trust and looks forward to shared success in advancing further in the textile industry."

Shares of RSWM Limited was last trading in BSE at Rs. 205.35 as compared to the previous close of Rs. 201.85. The total number of shares traded during the day was 7936 in over 319 trades.

The stock hit an intraday high of Rs. 207.00 and intraday low of 199.25. The net turnover during the day was Rs. 1611142.00.

Source : Equity Bulls

Keywords

RSWM Acquisition INE611A01016