scorecardresearchReliance Industries gains 1% on Shubhalakshmi Polyesters acquisition

Reliance Industries gains 1% on Shubhalakshmi Polyesters acquisition

Updated: 12 Sep 2022, 11:05 AM IST
TL;DR.

On September 10, Reliance Industries said the acquisition is part of the strategy to expand its downstream polyester business.

Mukesh Ambani, chairman and managing director of the Reliance Industries Ltd., speaks via live stream during the annual general meeting in Mumbai, India, on Monday, Aug. 29, 2022. Reliance will invest 2 trillion rupees ($25 billion) to roll out its 5G services in October across the largest Indian cities, its billionaire-chairman�Mukesh Ambani�said as he continues to expand and diversify the $221 billion empire. Photographer: Dhiraj Singh/Bloomberg

Mukesh Ambani, chairman and managing director of the Reliance Industries Ltd., speaks via live stream during the annual general meeting in Mumbai, India, on Monday, Aug. 29, 2022. Reliance will invest 2 trillion rupees ($25 billion) to roll out its 5G services in October across the largest Indian cities, its billionaire-chairman�Mukesh Ambani�said as he continues to expand and diversify the $221 billion empire. Photographer: Dhiraj Singh/Bloomberg

(PTI) Shares of Reliance Industries gained nearly 1 per cent in morning trade on Monday after the company announced the acquisition of polyester chips and yarn manufacturer Shubhalakshmi Polyesters Ltd for 1,592 crore.

On September 10, Reliance Industries said the acquisition is part of the strategy to expand its downstream polyester business.

Shares of the company opened at 2573.70, then gained 0.98 per cent to touch 2593.80 apiece on the BSE.

Similar movement was seen on the NSE where the company's shares opened at 2,570.55, then touched 2,591.60, higher by 0.87 per cent over its last close.

"Reliance Petroleum Retail Ltd (under name change to 'Reliance Polyester Ltd'), a wholly-owned subsidiary of the company, today executed definitive documents to acquire polyester business of Shubhalakshmi Polyesters Ltd and Shubhlaxmi Polytex Ltd for cash consideration of 1,522 crore and 70 crore respectively, aggregating to 1,592 crore by way of slump sale on a going concern basis," the firm had said. The acquisition will strengthen the textile manufacturing business of Reliance Industries. 

First Published: 12 Sep 2022, 11:05 AM IST