Bombay Rayon to acquire STI India

Bombay Rayon Fashions (BRFL) is one of India’s most versatile manufacturers of superior quality fabrics

and prêt-a-porter garments. With distinctions like being India’s largest shirting manufacturer, 50 million meters of superior textiles and 35 million finished garments per annum, this giant is constantly expanding to consolidate its empire.

The said acquisition of equity shares has triggered an open offer pursuant to SEBI Takeover Regulations to the existing shareholders of the Company. BRFL announced that the board of directors of the company held a meeting, to approve the acquisition of equity shares and Optionally Convertible Debentures (OCDs) along with underlying securities from the existing investors and OCD holders, constituting in the aggregate 70.56 per cent equity stake in Indore-based textile company STI India (STI), a company listed on Bombay Stock Exchange and National Stock Exchange of India for the total consideration of Rs. 700 million. The said acquisition of equity shares has triggered an open offer pursuant to SEBI Takeover Regulations to the existing shareholders of the company.

STI India is a reputed manufacturer of international quality cotton yarn and knitted grey cotton fabric. Established in 1986 as Bombay Rayon Group by Janardhan Agarwal, it started manufacturing fabric four years later in 1990 and by 1998, it was exporting the manufactured fabric. The finished garments facility was launched in 2001 and in 2005, the group consolidated as Bombay Rayon Fashion Limited (BRFL) after it had a successful IPO and is listed on all Indian stock exchanges. In the interim period, it went on to acquire DPJ Clothing, a UK-based supplier to high street retailers and set up seven garment manufacturing units in Bangalore. In 2007, BRFL acquired LNJ Apparel and commenced the mega textile and garment project with a MoU signed with the government of Maharashtra. The value of this project was estimated at $250 million. In 2008, the reputed brand Guru was acquired.