India’s leading infantwear manufacturer and exporter Kitex Garments has incorporated a new subsidiary, Kitex Apparel Parks (KAPL), by investing a cash consideration of Rs. 70 crore.
Kitex Garments has subscribed shares worth Rs. 70 crore in Kitex Apparel Parks (KAPL) divided into 7 crore shares of Rs. 10 each.
KAPL is a subsidiary of Kitex Garments wherein 70 per cent of investment is made by the company and the remaining 30 per cent stake will be invested by Kitex Childrenswear being a member of the Group.
Notably, KAPL falls within the related party of the company and promoters of the company are interested in the subsidiary company to the extent of their shareholding of the company.
The subsidiary company is engaged in the establishment and carrying on the business of yarn, fabrics, children’s garments, infantswear, menswear, ladieswear irrespective of age limit and the like and also to procure all raw materials and other auxiliary materials’ services required for the same.
On a consolidated basis, Kitex Garments posted a 44.4 per cent rise in net profit to Rs. 25.72 crore on a 33.7 per cent rise in net sales to Rs. 178.09 crore in Q2 FY22 over Q2 FY21.
In another development, Sabu M. Jacob CMD, Kitex Garments has acquired additional shares of the company from the open market.
“In accordance with the provisions of Regulation 7 (2) (a) read with Regulation 6 (2) of the SEBI (Prohibitions of Insider Trading) Regulations, 2015, we wish to inform you that I have acquired 102445 equity shares constituting 0.15 per cent of outstanding shares of the Kitex Garments Limited (KGL) on 22 November 2021 through open market purchase,” Jacob informed the stock exchanges. Jacob now owns 33.75 per cent stake in the company.
Kitex Garments recently announced its massive expansion plan in Telangana after it had a dispute with home state Kerala.
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