Approval for CLC Global, Spentex merger

Don't want to miss the best from Business Standard?

The board of directors of CLC Global and Spentex Industries on Thursday announced the merger of CLC Global Ltd with Spentex Industries. The new company will be known as Spentex Industries.

"The merger will help make Spentex financially strong as CLC Global is a cash rich company and has a history of profitability,'' said Mukund Choudhary, managing director, Spentex Industries.

CLC Global has cash reserves of around Rs 360 crore which will reflect in the balance sheet of Spentex, post-merger.

The total turnover after the merger will be in excess of Rs 360 crore, according to an official release.

Post-merger, the company shall issue an equity share of Rs 10 each for every one share of Rs 10 each held by the members of CLC Global.

The merged entity will have access to funds for planned future expansion plans enabling the company to double its capacity to manufacture value-added yarn.

At present the company has an installed capacity of 29,232 spindles that can manufacture 4,800 tonne of yarn per annum. The merger will increase the capacity to 55,440 spindles manufacturing a total of 8,500 tonne yarn per annum.