Filatex Fashions hits upper circuit as it looks to acquire Sri Lankan firm

In its exchange filing, the company informed the bourses that it proposes to acquire 51% of the equity shares capital of Isabella (Pvt) Limited, a Sri Lankan manufacturer of apparel and related products player.

The Hyderabad-based Filatex Fashions is likely to carry out this deal for a consideration of $7.55 million or about Rs 62.33 crore. The company is in the process of reaching certain preliminary understandings for the proposed acquisition.

Following the development, shares of Filatex Fashions surged 5 per cent, locked in its upper circuit limit, to Rs 18.15 on Friday. The scrip settled at Rs 17.30 on Thursday.

Filatex Fashions is engaged in the manufacturing and sale of knitted socks. Its machinery is imported from Korea and Italy with in-house research and development (R&D) facilities.

The company board of Filatex Fashions is scheduled to meet on 12 November 2022, Saturday to consider and approve the financial results for the quarter and half year ended on September 30, 2022.

Shares of Filatex Fashions have delivered multibagger returns. The stock has surged more than 150 per cent on a year-to-date basis, whereas it has delivered a return of 335 per cent in the last year.

Recently its board approved raising funds through the issuance of Foreign Currency Convertible Bonds (FCCBs) up to $100 million on a private placement basis.

The company has a strong clientele base, including names like Maxwell (VIP Group), Fila India, Adidas, Park Avenue, Tommy Hilfiger, Metro, among others, supplying to e-commerce majors like Amazon, Flipkart and SnapDeal.

Filatex has also been producing socks for the license holders like Walt Disney, Warner Brothers, Planet, Mickey Mouse, Simpsons and 32 other licentiates, besides having its own brands.