Citigroup's Venture Capital (CVC) informed that its arm CVCI has invested Rs 81 crore in the textile company Spentex Industries for enabling it to expand both organic and inorganically.
Board of Directors, at its last meeting, approved the issue of 1.75 crore equity shares and 17.5 lakh fully convertible warrants to Citigroup Venture, Spentex Industries said.
It stated that the promoters of the company have also invested in 27.5 lakh equity shares and 2.75 lakh fully convertible warrants.
Global management consultants Ernst & Young were the sole advisor to the deal, which is the largest investment by a private equity fund in a textile company in recent time.
Company informed that the presence of Citigroup venture as an investor will provide strategic depth, strengthen management processes and corporate governance and ultimately enhance long term shareholder value.
New Delhi based Spentex Industries Limited is an ISO 9001:2000 & ISO 14001 certified spinning unit. It is a CLC Enterprises company. Company manufactures high quality combed cotton yarn, with an installed capacity of 29,232 ring spindles. It manufactures, on a regular basis, counts ranging from 26s Ne to 40s Ne.
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