Firming up plans to list overseas; decision by next year
New Delhi, Sept 27 Spentex Industries Ltd, India’s largest yarn maker, is eyeing the possibility of an overseas listing, possibly on a European bourse. According to industry sources, the yarn major, which recently announced the acquisition of a Czech firm, is in initial stages of firming up plans to list overseas and would finalise a decision by next year.
Spentex, which announced the acquisition of Schoeller Litvinov in Czech Republic in June this year, has now got access to a sizeable European market in the high-end yarn segments, besides a large customer base in the EU.
This acquisition, according to analysts, is in line with company’s inorganic growth strategy of acquiring operational assets of strategic value. The Czech acquisition comes on the back of the acquisition of Uzbekistan-based Tashkent-To’yetpa Tekstil last year.
The Delhi-based company is working on plans to double its manufacturing capacity to around 10 lakh spindles over the next couple of years entirely through the inorganic route, with focus on more acquisitions.
The company, according to sources, is on the lookout to acquire medium to large-sized facilities within the country and abroad to expand capacity.
The Spentex share closed at Rs 28 on the BSE on Thursday, down 2.44 per cent. The 52-week high for the stock stood at Rs 76.85 per share while the 52-week low was Rs 25.55.