Transaction Details
Kothari Industrial Corporation Limited (KICL) acquired 4,50,00,000 equity shares in Phoenix Kothari Footwear Private Limited (GKFPL) on November 5, 2026. The allotment was made pursuant to a blanket approval by the Board of the Company for further investment up to ₹200 crore.
Financial Consideration
The shares were allotted at ₹10 per share, resulting in a total cash consideration of ₹45,00,00,000 (₹45 crore).
Ownership Impact
Following this allotment, Kothari Industrial Corporation Limited's shareholding in Phoenix Kothari Footwear Private Limited increased to 30% of the equity share capital.
Target Entity Details
Name: Phoenix Kothari Footwear Private Limited
Industry: Footwear Industry
Business: Manufacturing footwear and allied activities
Location: Tamil Nadu, India
Financial Performance: Turnover for FY 2023-24, FY 2024-25, and FY 2025-26 was Nil
Related Party Transaction
Yes, the acquisition falls under Related Party Transactions. Mr. Rafiq J Ahmed, Promoter, Chairman and Managing Director of KICL, holds directorship in Phoenix Kothari Footwear Private Limited. The transaction is being carried out at arm's length.
Purpose and Strategic Rationale
The acquisition is being undertaken to strengthen the Company's presence in the footwear segment and expand its product portfolio and market reach. The target entity's business is synergistic and aligned with KICL's existing business operations, falling within and supporting the Company's core line of business. The acquisition supports the Company's long-term growth strategy.
Regulatory Approvals
No governmental or regulatory approvals were required for this acquisition.
Transaction Status
The acquisition was completed upon allotment of shares by the Board of Directors of Phoenix Kothari Footwear Private Limited on November 5, 2026.