Yarn Syndicate Limited (YSL) - a BSE listed Company, is a Merchant Exporter and trader and is fully involved in the export and trading of various types of yarn, raw cotton and fabrics, announced to acquire 51% stake in Stitched Textiles Limited, valued at 38-39 Crores.
Barcelona - brand of Stitched Textiles Limited - is India's leading men's wear fashion brand, having an extensive presence with more than 100 stores countrywide. Due to its strong retail presence at PAN India level, YSL has planned to expand its business by entering into the retail segment with the goodwill of Stitched Textiles Limited.
Moreover, as Stitched Textiles Limited has its joint venture with Viru Retail Private Limited i.e. VS-by Virendra Sehwag; it will be of no surprise if YSL booms into the retail sector in the coming time.
Promoters of YSL stated that, "We are very pleased with this business strategy which will create a win-win situation for all the stakeholder's, henceforth, enabling us to raise our outlook for the future years. Our expansion into the retail segment is a milestone moment in the growth of YSL as we will introduce our world-class garments through retail medium."
The promoters further stated that "This investing strategy will assist YSL by entering into new business dimension, subsequently leading the Company to a new direction of growth".
In order to execute this visionary strategy, the promoters of YSL are planning to raise funds through right issue, which might as well result in promoter's stake dilution. For the purpose of which, the promoters have finely evaluated the fundraising plan in order to make the Company debt-free, to fulfill all its obligations with the bank and to achieve the goal of retail expansion at a go. This is yet another stepping stone of the company which propels to the next stage of its growth path.
Looking forward, the opportunity set continues to be attractive across all of their businesses. This plan of action will enhance their scale and ability to drive higher & provide more durable returns.
Shares of YARN SYNDICATE LTD. was last trading in BSE at Rs. 37.77 as compared to the previous close of Rs. 39.75. The total number of shares traded during the day was 9347 in over 63 trades.
The stock hit an intraday high of Rs. 37.80 and intraday low of 37.77. The net turnover during the day was Rs. 353109.00.