Qatar Royal family firm picks up 10% stake in KICL
The board of KICL has already approved the allotment of these shares to FJ Global Investment.
Representative Image
CHENNAI: A Qatar company belonging to the Royal family will pick up close to 10 per cent stake in the Chennai-based Kothari Industrial Corporation Ltd (KICL). FJ Global and Investment, which is owned by Falah Jassim JM AL-Thani, will pick 7,056,000 shares in KICL.
The board of KICL has already approved the allotment of these shares to FJ Global Investment. Falah Jassim JM AL-Thani, it may be mentioned, 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 board has approved the allotment of these shares at Rs 25 per share of the face value of Rs 5 each. Significantly enough, Rafiq Ahmed, the present promoter of KICL, too, will invest more into KICL so as to maintain his holding in KICL at 47 per cent. Simultaneously, the board of the company has also cleared a proposal to set up a joint venture company in Qatar. The proposed joint venture will have 70 per cent holding by KICL. The remaining will be held by Falah Jassim JM AL-Thani. 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.
Following the decision of the board to issue preferential shares to FJ Global Investment and Rafiq Ahmed, the board has also cleared a proposal to increase the authorised capital of the company to Rs 75 crore from the current Rs 25 crore. The plan awaits shareholders’ approval.
The board has also cleared a move to acquire shares of Rafiq Ahmed in Phoenix Kothari Footwear Ltd, in which he holds 30 per cent stake. The acquisition, however, is subject to relevant approvals and valuation. The board of KICL has said it will initiate the process of getting all regulatory and shareholders’ approval for the same.
Phoenix Kothari is setting up a non-leather footwear park in the backward district of Perambalur in TN. The first plant at this park was up and running within one year. 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 is gearing up to launch its first Kickers store in Chennai on Saturday.