Kitex Garments incorporated a new subsidiary, Kitex Apparel Parks (KAPL), on Thursday, 18 November 2021, by investing a cash consideration of Rs 70 crore.
Kitex Garments has subscribed shares worth of Rs 70 crore in Kitex Apparel Parks (KAPL) divided into 7 crores shares of Rs 10 each.
Kitex Apparel Parks (KAPL) is a subsidiary of Kitex Garments wherein 70% of investment is made by the company and the remaining 30% stake will be invested by Kitex Childrenswear being member of the group company. KAPL falls within the related party of the company and promoters of the company are interested in the subsidiary company to the extent of their shareholding of the company.
The subsidiary company is engaged in establishment and carrying on the business of textile items, such as yarn, fabrics, garments, wearing apparels made from natural or synthetic fibres or from blends of both including children's garments, babywear, infantswear, menswear, ladies wear irrespective of age limit and the like and also to procure all raw material and other auxiliary materials services required for the same.
On a consolidated basis, Kitex Garments posted a 44.4% rise in net profit to Rs 25.72 crore on a 33.7% rise in net sales to Rs 178.09 crore in Q2 FY22 over Q2 FY21.
Kitex Garments is engaged in the manufacture of fabric and readymade garments. The company operates through two business segments: garments and fabric. The firm also exports cotton garments principally infants wear.
Shares of Kitex Garments traded 4.38% lower to close at Rs 171.45 on Thursday, 18 November 2021. The domestic stock market was shut yesterday, 19 November 2021 on account of Guru Nanak Jayanti.
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