Rafiq Ahmed, who is the Chairman and Managing Director of KICL, had in his individual capacity invested in Phoenix Kothari Footwear Ltd. He has since sold his shares to KICL.
The acquisition was finalised through the execution of a Delivery Instruction Slip (DIS) by Rafiq Ahmed, the seller of the shares.
This strategic investment, valued at a total cash consideration of Rs. 99.06 crore (purchased at a cost of Rs. 12.7 per share), is expected to beef up the presence of KICL in the footwear segment.
Following this transfer, Phoenix Kothari Footwear Limited has now become an associate company of KICL.
The acquisition falls under related party transactions, as Rafiq Ahmed, a promoter and Chairman and Managing Director of KICL, has a directorship interest in Phoenix Kothari Footwear Limited.
“The transaction was carried out at “arm’s length” and received approval from its Audit Committee, Board, and shareholders,” a notification filed by KICL to stock exchange said.
Phoenix Kothari Footwear Limited, incorporated on 2 December 2022, is a public company engaged in the manufacturing of footwear in Tamil Nadu.
