Shares of BSE-listed Cravatex Ltd were locked in the upper circuit in early trade on October 20, after Footwear retail chain Metro Brands signed a share purchase agreement to acquire 100 percent shareholding of the sportswear unit to expand its presence in the sports and athleisure space in India.
At 10:40am, the stock was locked in the 20 percent upper circuit at Rs 455.60 apiece on the BSE, while the benchmark Sensex was down 178.96 points or 0.30 percent at 58,928.23.
Cravatex Ltd is a retail, brand licensing, distribution and sourcing company that has the exclusive long-term licence for the Italian sportswear brand FILA, owns sportwear brand Proline, and represents other international brands, it said in the regulatory filing.
The acquisition is based on fulfilment of closing conditions by both parties. Paragon Partners, an existing investor in Cravatex Brands Ltd, will also sell its entire stake as part of this transaction, it added.
"This acquisition fits our strategic vision at Metro Brands Ltd to leverage our expertise in brick and mortar and e-commerce retail, while serving the growing needs of the consumer in the sports and athleisure category. We are truly committed to our vision to be India’s largest specialty footwear and accessory retailer. With this acquisition, we look forward to elevating the sportwear landscape in India," Metro Brands, Chief Executive Officer, Nissan Joseph, said.
Through this acquisition Metro Brands will receive exclusive rights for Proline and for the sale and distribution rights of FILA across formats, including Exclusive Brand Stores, Multi Brand Stores, Airport Stores, Distribution, Online Marketplaces and Webstores, in India.
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