Tuesday, March 20, 2007

Textile firm RSWM picks up 48.17% in Cheslind Textiles for around Rs. 28 crores

Rajasthan Spinning and Weaving Mills (RSWM), an LNJ Bhilwara Group textile company, has acquired a 48.17% equity stake in Bangalore-based Cheslind Textiles from its promoters for Rs. 27.8 crores. Cheslind is a 100% export-oriented unit manufacturing cotton yarn with a turnover of about Rs. 120 crores. Post-acquisition, RSWM would become one of the top yarn manufacturers in terms of the number of spindles. ICICI Securities was the advisor for this transaction.

RSWM is also making an open offer for acquiring another 20% of Cheslind at a price of Rs. 25 per share, at a 16% premium to Cheslind’s closing market price on the bourses. A successful open offer would take the cumulative acquisition cost for 68.17% equity stake in Cheslind Textiles at Rs. 39.3 crores. The acquisition will be financed through internal accruals.

The acquisition brings in a basket of products including super fine count cotton yarns and would also provide RSWM with an established foothold in the international market. The deal would bring an additional 64,500 spindles under RSWM taking its total spindlage to about 360,000 spindles, pegging it amongst the top yarn manufacturers in the country.

Read the article in The Economic Times.
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Textile firm RSWM planning acquisitions in India, Europe

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