Kitex Garments Limited , a company listed on both the BSE Limited and National Stock Exchange of India Limited, has seen a significant change in its shareholding pattern. Usha CP, an existing shareholder, has substantially increased her stake in the company through an off-market transaction.

Key Details of the Transaction

Shareholding Changes

The off-market transaction has resulted in Usha CP increasing her total shareholding in Kitex Garments Limited from 90,11,573 shares to 1,47,88,146 shares. This represents a significant boost in her ownership stake from 4.52% to 7.42% of the company's total share capital.

Regulatory Compliance

In line with the Securities and Exchange Board of India (SEBI) regulations, this substantial acquisition of shares has been duly disclosed. The regulations require such disclosures to ensure transparency in significant changes in company ownership and to keep all stakeholders informed.

This development may be of interest to existing shareholders and potential investors in Kitex Garments Limited, as it represents a notable change in the company's ownership structure.

Kitex Garments Limited , a prominent player in the textile industry, has made headlines with a series of significant announcements, including a correction to its demerger disclosure and the release of its financial results.

Demerger Disclosure Correction

The company issued a correction to its Scheme of Arrangement disclosure between Kitex Childrenswear Limited and Kitex Garments Limited. The rectification addressed a typographical error concerning the turnover percentage. The corrected statement now reads '54.50% to the total turnover of the Resulting Company in the immediately preceding financial year', instead of the previously mentioned '54.50% of the total turnover of the Demerged Company'.

Financial Performance Highlights

Kitex Garments announced its audited standalone and consolidated financial results, showcasing robust growth:

The company demonstrated substantial growth across key financial metrics. Revenue surged by 58.63% to ₹1,001.30 crore, up from ₹631.20 crore in the previous year. EBITDA saw a remarkable increase of 91.03%, reaching ₹219.30 crore. Net profit more than doubled, growing by 143.19% to ₹135.70 crore, while earnings per share (EPS) improved significantly from ₹2.82 to ₹6.95.

Dividend Announcement

In light of the strong financial performance, the Board of Directors has recommended a final dividend of ₹1.50 per equity share. This dividend proposal is subject to shareholder approval at the upcoming Annual General Meeting.

Demerger Details

The company provided additional details on the demerger of its Textile Business Division:

• The demerged division reported a turnover of ₹349.64 crore.
• Under the scheme, shareholders will receive 9,706 equity shares of face value ₹1 each in the Resulting Company for every 100 shares of face value ₹100 each held in the Demerged Company.

Auditor's Opinion

The company's auditors issued a qualified opinion on the standalone financial results, citing concerns over the recoverability of a ₹27.76 crore investment in associate Kitex USA LLC. However, the consolidated results received an unmodified opinion from the auditors.

Outlook

Kitex Garments' strong financial performance, coupled with strategic moves like the demerger of its Textile Business Division, positions the company for potential growth. The significant increase in revenue and profitability demonstrates the company's resilience and effective management strategies in a competitive market environment.

Investors and stakeholders will be keenly watching how the company leverages this growth momentum and manages the demerger process to create long-term value.