Reliance Retail Ventures Limited (RRVL), a subsidiary of the Reliance Industries Limited, has purchased 16.31 per cent equity holding in Genesis Colors Limited (GCL) for a consideration of Rs. 34.80 cr. This stake purchase is in addition to 49.46 per cent equity holding in GCL held by the Reliance Brands Limited (RBL), a subsidiary of RRVL.
Now, the aggregate equity shareholding of RRVL and RBL in GCL stands at 65.77 per cent, Reliance said in its disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The acquisitions will help the company to strengthen its footage in the retail industry and support its long term strategy to enhance its value in the retail industry. No regulatory approvals were required for the said acquisition of shares as these investments do not fall within related party transaction and none of RIL’s promoter / promoter group / group companies have interest in these entities, RIL said.
GCL’s annual turnover in FY 2017-18 is Rs. 86.02 cr (provisional). GCL reported a turnover of Rs. 80.04 cr and Rs. 114.16 cr in FY 2016-17 and FY 2015-16, respectively. GCL was incorporated in November, 1998 and is in the business of retailing and wholesale of branded readymade garments, bags, footwear and accessories directly and through its subsidiary/joint ventures. This acquisition adds to the existing portfolio of branded fashion retail outlets.
