The closure is expected to be completed by December 31, 2019, the company said in an exchange release.
"This is to inform that as approved by the Board, the Company has given its consent by signing the Shareholder's Resolution of its subsidiary in Indonesia i.e. PT Five Star Textile Indonesia ("PTFS") on December, 2018 for closure of the same." the release said.
"As already intimated that PTFS was incurring losses for many years hence; this is in line with the strategic move to close this subsidiary. We would also like to inform that all the financial risks related to this subsidiary have been provisioned in the past years reported financials," the company said.
At 10:50, the stock was locked in at 5 per cent at Rs 115.10 on the BSE. Over 1.14 million shares traded so far on the National Stock Exchange (NSE) and BSE. In comparison, the S&P BSE Sensex was trading at 36,084, down 186 points or 0.5 per cent.