Kitex Garmenets Ltd. — Capital/Financing Update 2018

Oct 19, 2018

TE

Kitex Garments Limited

P.B.NO.5, KIZHAKKAMBALAM-683562, KOCHI, KERALA, INDIA PHONE: 91 484 4142000, FAX: 91 484 2680604 E mail:kgl@kitexgarments.comCIN: L18101KL1992PLC006528 www.kitexgarments.com

October 18, 2018

Ref: To, Date:

The Secretary BSF Limited Corporate Relationship Department, 1st Floor, New Trading Ring, Rotunda Building, P J Towers, Dalal Street, Fort Mumbai,

The Secretary

National Stock Exchange of India Ltd 'Exchange Plaza', Bandra - Kurla Complex Bandra (E), Mumbai, Maharashtra - 400051

Script No: 521248

Maharashtra - 400 001

Script No: KITEX

Dear Sir/ Ma'am,

Sub: - INTIMATION FOR INCORPORATION OF WHOLLY OWNED SUBSIDIARY OF THE COMPANY

With reference to the above subject, we hereby inform that the Company has incorporated a Wholly owned subsidiary in the name of "Kitex Kidswear Limited".

The details as required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI circular No. CIR/CFD/CMD/4/2015 dated September 09, 2015 is as given below:

SI.No.	Particulars	Details
$\mathbf{1}$	Name of the target entity, details in brief such as size,	Target Company: Kitex$\bullet$
	turnover etc.;	Kidswear Limited ("KKL")
		Authorised Capital: Rs. 25 Crs.$\bullet$
		Paid up capital: Rs. 1 Cr.
		(New Company)
		Size, Turnover: NA
$\overline{2}$	Whether the acquisition would fall within related party	No
	transaction(s) and whether the promoter/ promoter group/
	group companies have any interest in the entity being
	acquired? If yes, nature of interest and details thereof and
	whether the same is done at "arms length"
3	Industry to which the entity being acquired belongs;	Textile Industry

$\overline{4}$	Objects and effects of acquisition (including but not limitedto, disclosure of reasons for acquisition of target entity, ifits business is outside the main line of business of thelisted entity);	Incorporated as Wholly ownedsubsidiary of the Company forcarryingInfantswearoutBusiness.KKL's business is similar to themain line of business of listed
5	Brief details of any governmental or regulatory approvals	entity for separate labels.No
	required for the acquisition
6	Indicative time period for completion of the acquisition	Not applicable
$\overline{7}$	Nature of consideration - whether cash consideration orshare swap and details of the same;	Cash
8	cost of acquisition or the price at which the shares areacquired;	Rs. 1 Cr.
9	percentage of shareholding / control acquired and / ornumber of shares acquired;	100% - Initial subscription of10,00,000 equity shares of Rs.10 each.
10	brief background about the entity acquired in terms ofproducts/ line of business acquired, date of incorporation,history of last 3 years turnover, country in which theacquired entity has presence and any other significantinformation (in brief);	KKL is incorporated as Whollyowned Subsidiary and receivedcertificate of Incorporation onOctober 17, 2018. KKL is yet tocommence its operationsLine of business: InfantswearBusiness
		Last 3 years turnover: NACountry in which the acquiredentity has presence: India

$\overline{\mathcal{O}}$

This is for information and records.

Thanking you.

i,

Yours' faithfully

$\rightarrow$

For Kitex Garments Limited

$\bar{\mathbf{v}}$ $\int$ or Sabu M. Jacob Chairman and Managing Director