Business

Sabu Jacob Now Owns 33.75% Stake In Kitex Garments

Sabu M Jacob, Promoter, Chairman and Managing Director of Kitex Garments has acquired additional shares of the company from the open market. "In accordance with the provisions of Regulation 7 (2) (a) read with Regulation 6 (2) of the SEBI (Prohibitions of Insider Trading) Regulations, 2015, we wish to inform you that I have acquired 102445 Equity Shares constituting 0.15% of outstanding shares of the Kitex Garments Limited (KGL) on November 22, 2021 through open market purchase," Jacob informed the stock exchanges. Jacob now owns 33.75% stake in the company Kitex Garments invests Rs 70 cr to incorporate new subsidiary Kitex Garments incorporated a new subsidiary, Kitex Apparel Parks (KAPL), on 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 crore 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, a member of the group company. 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.