Market News
1 min read | Updated on February 06, 2024, 12:38 IST
SUMMARY
As part of this strategic acquisition, SP Apparels will acquire a 51.33% stake in Young Brand Apparel (YBAPL) from promoter Bannari Amman.
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P Apparels gains more than 7% post new acquisition
Shares of the apparel manufacturer and exporter rose 7.6% intraday after the company signed an agreement to acquire a 100% stake in Young Brand Apparel for ₹223 crore. As part of the agreement, SP Apparels will acquire a garment unit, land and building located in Tamil Nadu.
Incorporated in December 2006, Young Brand Apparel is a Bannari Amman Spinning Mills subsidiary. The company manufactures intimate wear for brands like American Eagle, Jockey International, Marks & Spencer and Benetton and exports to countries like the US, UK, Japan, and Canada.
With this acquisition, SP Apparels will be able to diversify its product offerings by leveraging each other’s strengths and further expand its customer base and target markets. Furthermore, the land parcel is expected to boost SP Apparel’s manufacturing capacity to fuel future expansion.
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