Grasim Industries to acquire Soktas India

Grasim Industries is set to acquire 100 per cent equity shareholding of Soktas India Private Limited (SIPL) from its current promoters for an enterprise value of Rs. 165 crores. This acquisition is compatible with Grasim’s linen business.

The said enterprise value will be subject to net debt and working capital adjustments as of the closing date and would be funded through internal accruals.

Post the acquisition, SIPL will become the wholly-owned subsidiary of Grasims. SIPL is currently a wholly-owned subsidiary of SOKTAS Tekstil Sanayi ve Ticaret A.S. which is a well-known producer and marketer of fabrics having main facilities in Soke, Turkey.

SIPL is engaged in the manufacturing and distribution of premium cotton fabrics. Its state-of-the-art manufacturing facility is located at Kolhapur, Maharashtra, having a capacity of 10 million metres per annum of finished fabric. It sells premium fabrics under the brands of SOKTAS, Giza House and Excellence by SOKTAS. It also supplies to leading Indian and global menswear brands.

This acquisition is compatible with Grasim’s linen business. Grasim has a leading brand Linen Club and is one of India’s top linen fabric manufacturers. The completion of the transaction is subject to requisite regulatory approvals.

On Wednesday, the stock of Grasim Industries opened at Rs. 815 per share. In the morning session, it surged by 1.6 per cent to Rs. 821.65 from its previous close of Rs. 808.35 per share.