Kothari Industrial Corporation Ltd to Acquire 30% Stake in Phoenix Kothari Footwear Limited for Rs.99.06 Crores

Kothari Industrial Corporation Ltd has entered into a share purchase agreement with Mr.Rafiq Ahmed for the acquisition of 7,80,02,900 equity shares in Phoenix Kothari Footwear Limited. The acquisition, valued at Rs.99.06 crores, is a related party transaction as Mr. Rafig J Ahmed, a promoter, chairman, and managing director, has directorship and shareholding interest over Phoenix Kothari Footwear Limited. The transaction is being carried out at arm’s length and has been approved by the Audit Committee, the Board, and the shareholders. The acquisition is a strategic investment to strengthen Kothari Industrial Corporation Ltd’s presence in the footwear segment. The Company has already paid a sum of Rs.40,00,00,000 as advance consideration and will pay the balance as per the terms of the agreement. The acquisition will give Kothari Industrial Corporation Ltd a 30% stake in Phoenix Kothari Footwear Limited, a public company incorporated on 08.12.2022 and engaged in the business of manufacturing of footwear in Chennai, Tamil Nadu, India.