Reliance Petroleum Retail Ltd, a wholly owned subsidiary of Reliance Industries Ltd, has executed definitive agreements to buy the polyester business of Shubhalakshmi Polyesters Ltd (SPL) and Shubhalakshmi Polytex Ltd (SPTX), RIL said in an exchange filing. The deal has been done on a bearish sell-off basis at a cash return of Rs 1,522 crore and Rs 70 crore respectively, the company said.
The acquisition, for a total amount of Rs 1,592 crore, will be undertaken by Reliance Petroleum Retail Limited and is subject to the approval of the Competition Commission. India (“CCI”) and respective lenders of SPL and SPTEX, Reliance Industries said in an exchange filing.
“Reliance Petroleum Retail Limited (under name change to ‘Reliance Polyester Limited’), a wholly owned subsidiary of the Company, has today acquired the polyester business of Shubhalakshmi Polyesters Limited (“SPL”) and Shubhalakshmi Polytex Limited (“SPTX”). ) for cash consideration of Rs.1,522 crores and Rs.70 crores respectively, aggregating to Rs.Slowdown on the basis of ongoing concern, said the filings made with BSE and NSE. 1,592 crore through the sale of Rs.
Reliance Petroleum Retail Limited will execute the acquisition as part of its strategy to expand its downstream polyester business.
SPL’s turnover for FY 2019, FY 2020 and FY 2021 is Rs 2,702.50 crore, Rs.
2,249.08 crore and Rs 1,768.39 crore respectively. On the other hand, as per the filing, the turnover of SPTeX for FY 2019, FY 2020 and FY 2021 stood at Rs 337.02 crore, Rs 338.00 crore and Rs 267.40 crore respectively.
The continuous polymerization capacity of SPL is 2,52,000 MT/yr. The company manufactures polyester fibers, yarns and textile grade chips through the direct polymerization route as well as texturizing with value addition through extruder spinning.
Shubhalakshmi Polytex Limited has two manufacturing facilities located at Dahej (Gujarat) and Silvassa (Dadra and Nagar Haveli). SPtex has a texturized yarn manufacturing facility at Dahej.
“The above transactions do not fall within related party transactions and none of the promoters/promoter group/group companies of the company have any interest in the above entities,” RIL said in the exchange filing.
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