Shares of the world’s largest bed linen company increased by 4 percent following the acquisition of a 100 percent stake in Modern Home Textiles, Inc. for USD 11.7 million.
Share price variations:
With a market capitalization of Rs. 7,244.83 crores, Indo Count Industries Ltd. rose to an intraday high of Rs. 376.95 representing a 4 percent increase from its previous closing price of Rs. 361.50 per share.
Ace investor Mukul Agrawal holds 23,25,000 equity shares which represent 1.17 percent of the company as of June 2024.
Reason for the Rise:
According to exchange filings, Indo Count Industries Ltd. has acquired a 100 percent stake in Modern Home Textiles, Inc. for USD 11.7 million through its US subsidiary, Indo Count Global Inc., via a stock purchase agreement with Modern Home’s stakeholders. The acquisition is set to be completed by October 31.
Modern Home Textiles, Inc. a Manufacturer of a wide range of pillows and other filled products, with a facility located in Phoenix, Arizona, that has an annual production capacity of 8 million pillows. This acquisition will help the Group to improve its presence in the utility bedding segment in North America.
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Brand Portfolio:
Indo Count Industries Ltd. boasts an impressive and diverse brand portfolio, including Wamsutta, along with Boutique and Layers. Through recent brand partnerships, Indo Count has also added Fieldcrest and Waverly to its growing portfolio.
Recent Updates and Acquisitions:
In September, the company, through its U.S. subsidiary, acquired a majority stake of 81 percent in Fluvitex USA, Inc., a player in the utility bedding business, for USD 19.63 million.
In 2024, its U.S. subsidiary completely acquired the global brand “Wamsutta,” an industry-leading home fashion brand, including its trademark rights, for USD 10.25 million.
Financial Performance:
For Q1FY25 the company reported a net profit increase of 5.5 percent to Rs. 77.8 crore from Rs. 73.74 crore in Q1FY24, while revenue from operations marked an increase of 26.97 percent to Rs. 941.43 crore from Rs. 741.43 crores in comparison to the same period.
In FY24 company generated an ROE of 17.41 percent and a ROCE of 18 percent.
About the company:
Indo Count Industries Limited (ICIL) is engaged in the home textiles & bedding industry. Its product portfolio includes bed sheets, fashion bedding, utility bedding, and institutional bedding.
The company has manufacturing plants in Gujarat and Maharashtra Showrooms, Warehouses, e-commerce drop Ship & Design studio in the USA and UK, and Showrooms in the UAE and exports its products to more than 50 countries.
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Written By: Joseph Pv
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