Hotline: 1800 102 2007
X
Search Business Opportunities
Jul, 03 2018

Lux board says yes to merger of promoter companies

Shares of Lux Industries which gained 27% so far this year ended flat at Rs 1,922.60 on Monday. The J M Hosiery owns men brand Genx and Ebell Fashions owns women brand Lyra.

The board of hosiery major Lux Industries has approved the merger of two promoter group companies — J M Hosiery and Ebell Fashions — with the company in a non-cash deal at a combined valuation of Rs 861 crore.

This deal, according to the company, will help minority shareholders to unlock value in the long-term. The deal will be ‘EPS accretive’ for the company, Udit Todi, senior VP of Lux Industries, told PTI.

The profits of three companies post-merger will be around Rs 79 crore for the year ended FY 2018 on revenue of Rs 1,142 crore.

Shares of Lux Industries which gained 27% so far this year ended flat at Rs 1,922.60 on Monday. The J M Hosiery owns men brand Genx and Ebell Fashions owns women brand Lyra.

As per the deal, the company will issue 48.43 lakh fresh shares of Lux Industries to the promoters at a valuation of Rs 1,779 each, which is the average of last two weeks prior to the June 26 board meet that approved the merger. The shareholding of promoters will increase to 78% after the deal from 73.8% now.

Comment
image
Related opportunities
  • Plumbing, Sanitary Ware and Bathroom Fittings
    About Us: JAAZ Corporation Pvt. Ltd. is one of leading..
    Locations looking for expansion Gujarat
    Establishment year 2009
    Franchising Launch Date 2018
    Investment size Rs. 5lac - 10lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Vadodara Gujarat
  • Ice creams & Yogurt Parlors
    About Us: Bombay Kulfis set up their base in July 2016..
    Locations looking for expansion Andhra pradesh
    Establishment year 2016
    Franchising Launch Date 2018
    Investment size Rs. 5lac - 10lac
    Space required 50
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Hyderabad Andhra pradesh
  • Others Dealers And Distributors
    About Us: Forsch is premium engine oil and lubricant brand headquatered..
    Locations looking for expansion Karnataka
    Establishment year 2016
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 400
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Banglore Karnataka
  • Ice creams & Yogurt Parlors
    About Us: Michael’s Icecream Burger is the first of its kind,..
    Locations looking for expansion Karnataka
    Establishment year 2017
    Franchising Launch Date 2019
    Investment size Rs. 5lac - 10lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Bangalore Karnataka
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities