Indian apparel retailer Reliance Retail announced Sunday it has purchased 16.31 percent stake in readymade garment wholesaler and retailer Genesis Colors Ltd (GCL) for Rs 34.80 crore (about 4.8 million dollars.)
The stake buy by the group in GCL is in addition to 49.46 percent stake already held by Reliance Brands, a subsidiary of RRVL. The announcement was made public via a filing to the BSE.
"No regulatory approvals were required for the said acquisition of shares. These investments do not fall within related party transaction and none of RIL's promoter/promoter group/group companies have interest in these entities," RIL added in the communication to the Indian markets regulator.
As a result of the transaction, the aggregate equity shareholding of RRVL and RBL in GCL stands at 65.77 percent. This acquisition adds to the existing portfolio of branded fashion retail outlets, RIL said in a corporate release.
It´s noteworthy that RRVL has also recently acquired a stake in five more companies for an aggregate Rs 57.03 crore. These entities are engaged in the business of retailing and wholesale of branded readymade garments, bags, footwear, and accessories.
Over the past months, RRVL bought 50 percent stake each in GLF Lifestyle Brands and Genesis La Mode, and also purchased 2.07 percent in Genesis Luxury Fashion Pvt Ltd, taking its holding in the company to 49.37 percent. Finally, it acquired 50 percent stake each in GML India Fashion and GLB Body Care.
"The acquisitions will help the company to strengthen its footage in the retail industry and support its long-term strategy to enhance its value in the retail industry.