Lux Industries Approves the Merger of Promoter Companies
Today, the board of Lux Industries has granted approval to the merger of two promoter group companies. These two promoter group companies are J M Hosiery and Ebell Fashions. Lux Industries approved the merger companies, with the company in a non-cash deal at a combined valuation of Rs 861 crore.
As per the company, this deal will be helping minority shareholders to unlock value in the long-term. Today, senior VP of the Lux Company, Udit Todi, informed that the deal will be ‘EPS accretive’ for the company.
For the year ended FY 2018, the profits of three companies post-merger will be around Rs 79 crore on revenue of Rs 1,142 crore.
On Monday, the shares of Lux Industries ended flat at Rs 1,922.60. The shares of the company gained 27% so far this year. Other promoter companies J M Hosiery also owns men brand Genx, while Ebell Fashions owns women brand Lyra.
The deal of Lux says that the company will issue 48.43 lakh fresh shares of Lux Industries to the promoters at a valuation of Rs 1,779 each. This is the average of last two weeks prior to the June 26 board meet that approved the merger. The shareholding of promoters will increase to 78% after the deal from 73.8% now.