Anand Jain’s firm buys 10% stake in Gokaldas Exports

Anand Jain, chairman of Jai Corp and a confidante of Reliance Industries chairman Mukesh Ambani, has picked up nearly 10% equity stake in Gokaldas Exports, a leading player in the readymade garment industry.Mr Jain’s acquisition coincides with Reliance Industries’ attempt to revive ‘Only Vimal’ and other textile brands. Reliance Industries, which started as a textile company in 1979, now earns less than 1% of its revenues from the textile business.

Blackstone had acquired a 50% stake in Gokaldas from its promoters last year. The deal was pegged at Rs 275 a share, 20% higher than the ruling market rate at that time, making it the country’s largest management buyout in the textile industry. It was followed by the mandatory open offer to shareholders which increased Blackstone’s stake to 68%.
The US-based PE giant Blackstone is the largest shareholder in Gokaldas, with a 68% holding. The Hinduja family, the original promoters of the company, now holds 20%.

Bombay Rayon to acquire brand for Rs 208 cr

Textile company, Bombay Rayon Fashions (BRFL) today said that the company has entered into terms of understanding for taking over brand 'Guru' and other related retail business on going concern basis, with Italian company Jam Session Holdings Srl for a total consideration of 33 mn euros (about Rs 208 cr).

The acquisition is by excercising the call/put option within 42 months and till then operate the brand and business on a lease basis.The company has also approved the scheme of amalgamation of its wholly owned subsidiary Leela Scottish Lace into the company. BRFL had acquired controlling stake in Leela for Rs 155 crore last year.