Coimbatore-based textile firm SP Apparels recently announced the sale of their retail division.
In a stock exchange filing, the company said that the sale would happen to SP Retail Brands — an unlisted public company promoted by the promoter of SP Apparels and other independent Directors for rs. 81 cr. “The total consideration of the deal will be rs. 81 cr, which will be settled by SP Retail Brands partly by cash and a portion by way of compulsorily convertible preference shares of SP Retail Brands Limited.
The cash settlement will be partly made immediate and partly through deferred payment,” the company added in its filing. SP Apparels further added that the decision to sell has been taken following the announcement on August 13 2019, to hive off its retail division owing to slump in sale. The company is also involved in the manufacturing, distribution and marketing of the apparel brand Crocodile in India.
At the time of filing this report, the stock price of the company stood at rs. 200.8, up by 1.34 percent.