Reliance Capital Partners, a part of Anil Ambani-controlled Reliance Capital Group, will acquire 14.55 per cent stake in Maxwell Industries Ltd for Rs 45 crore (Rs 450 million).
The acquisition would facilitate funds for Maxwell's proposed Rs 250 crore (Rs 2.5 billion) expansion aimed at launching international brands in India and export outsourcing projects, makers of VIP brand of hosiery, the company informed the Bombay Stock Exchange.
Singhi and Associates Advisors Pvt Ltd acted as advisors for this transaction, it said.
Post this investment the networth of the group would be Rs 160 crore (Rs 1.6 billion) in FY'07.
Maxwell plans to set up new comprehensive -- integrated manufacturing facilities at Bangalore and Coimbatore to cater to its recently concluded joint venture, licensing and outsourcing agreements with leading International brands in its high growth premium segments of Innerwear and mid segment Jeans wear.
As part of corporate restructuring program, Maxwell would amalgamate its sister companies -- Lovable Lingerie Pvt Ltd and Microtex India Ltd, manufacturer of 'Live-in' jeans into itself.
The group's turnover would be around Rs 260 crore (Rs 2.6 billion) for financial year 2006 and targets to achieve Rs 600 crore (Rs 6 billion) turnover in next two years after the present round of restructuring and expansion.
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