The Indo Rama Group informed that the company is looking options to restructure subsidiary Indo Rama Textiles (IRT), which could include putting the company on the block.
The group is planning to concentrate on the development and manufacture of polyester yarn through Indo Rama Synthetics and look at growing the business further, sources said.
It is also learnt that the group has mandated global accounting and consulting firm Ernst & Young to devise the blueprint for the restructuring exercise. However, when contacted, Indo Rama Synthetics Chairman and Indo Rama Textiles director, Om Prakash Lohia, denied any such move.
?s of now, there is no plan to sell Indo Rama Textiles. But we are exploring all possibilities to restructure... I can? say what?l happen tomorrow,?he told. The Lohias own about 27% of Indo Rama Textiles equity capital, according to the information filed with the BSE.
Merchant banking sources were unclear about the value of Indo Rama Textiles. The company posted a net profit of Rs 12.2 crore, while revenues totalled Rs 392 crore in the previous fiscal year that ended March 31, ?5.
It may also consider selling part of its stake to a strategic partner and it was scouting for possible partners in this regard. When contacted, Mr Lohia said nothing has been finalised as yet. The Indo Rama Textile board has five directors, including son Vishal Lohia, who is a whole-time director.
The stock has also seen a surge on the BSE in the past month, rising 28% to Rs 56.30. While the textile industry and textile exports are likely to benefit due to the removal of quotas, the industry has witnessed some pressure on viscose and cotton yarn prices due to increased cotton output.
