Qatar-based FJ Global and Investment belonging to the Royal family will pick up close to 10% stake in the Chennai-based Kothari Industrial Corporation Ltd (KICL).
FJ Global, which is owned by Falah Jassim J.M.AL-Thani, will pick 70.56 lakh shares in KICL for ₹25 per share. Besides, the present promoter of KICL, Rafiq Ahmed will invest more so as to maintain his holding in KICL at 47%.
Mr. Falah Jassim J.M.AL-Thani is a promoter-director of Doha Bank and was also a founder of Qatar Airways. He is also a former minister of the Qatar Government.
The investment by a company belonging to Qatar Royal family is a big boost for KICL which is now spreading is presence in the non-leather footwear field and has gotten into drones and the like, KICL said in a statement.
Simultaneously, the KICL board also cleared a proposal to set up a joint venture company in Qatar. KICL will hold 70% and Mr. Falah Jassim J.M.AL-Thani will pick up the remaining stake.
“The idea of a joint venture in Qatar is to scout for growth opportunities and promote business globally. Further details of the proposed joint venture are still being worked out,” KICL said.
Following the decision of the board to issue preferential shares to FJ Global Investment and Mr. Ahmed, the KICL board has also cleared a proposal to increase the authorised capital to ₹75 crore from ₹25 crore.
In a related move, KICL also cleared a move to acquire 30% stake of Mr. Ahmed in Phoenix Kothari Footwear Ltd. The acquisition is subject to relevant approvals and valuation.
Phoenix Kothari is setting up a non leather footwear park in the backward district of Perambalur in Tamil Nadu. The first plant at the Perambalur footwear park was up.
Published – December 12, 2024 10:55 pm IST
