Technocraft may sell garment, yarn business for Rs 250cr
Published on Wed, May 11, 2011 at 14:11 | Source : CNBC-TV18
Updated at Wed, May 11, 2011 at 17:44
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Technocraft Ind
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Reliable investment banking sources said that Technocraft Industries is looking to sell its garment and yarn business for Rs 250 crore. CNBC-TV18's Nimesh Shah exclusively reports with more details.
Reliable investment banking sources said that the company initiated talks with couple of other companies and the plans are at a very initial stage. Bankers are exploring this opportunity of selling their garments and yarn business.
The garment and yarn businesses contribute close to 40% of the company’s revenues. Around Rs 25 crore came from the garments business last year and close to Rs 130 crore came from the yarn business.
The management is looking at close to two times seat for the business to be hived off and sold to a third party, which works out to be close to Rs 300 crore. It might be the little stretched value because the textile businesses do not see that kind of traction. The company may not get close to Rs 300 crore, but they are looking between Rs 250 and Rs 300 crore for these two businesses.
The management sources said that they were exploring options of selling these businesses, but nothing has been finalised yet. The bankers working on the deal said that it’s a little challenging because of the valuation and the textile business has not being seeing that kind of traction.
As of now, the company is looking at hiking of these two businesses. They may fetch close to Rs 50 crore, if and when the deal gets finalised in the next couple of months from here on.
Rgds/saurabh
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