Kitex Garments Limited (KGL), along with its promoter group company, Kitex Childrenswear Limited, has infused additional capital into its subsidiary, Kitex Apparel Parks Limited (KAPL). The total investment aggregates ₹171.23 Crores, with KGL contributing 70% of the funds. This transaction was executed via the conversion of existing advances into equity shares on March 31, 2026, maintaining the existing ownership structure.
Additional Capital Infusion in Subsidiary
Kitex Garments Limited has announced a strategic move involving further investment into its material subsidiary, Kitex Apparel Parks Limited (KAPL). The combined investment by KGL and its promoter group entity, Kitex Childrenswear Limited, totals Rs. 171.23 Crores. KGL will account for 70% of this new funding.
Details of the Transaction
The transaction was finalized on March 31, 2026. The consideration for acquiring the additional shares was not cash; rather, it was executed through the conversion of outstanding advances previously extended by the Company to its subsidiary. The total cost of acquisition reflected in the books is ₹11,986,25,694.00.
Subsidiary Status and Ownership
KAPL is a material subsidiary engaged in the Textile garments manufacturing industry. The object of the investment is to maintain the equity participation proportion already existing within KAPL. Following this infusion, KGL’s percentage shareholding remains at 70%, with 10,996,5660 new shares acquired. The investment ensures that the capital structure aligns with the current ownership levels.
Kitex Apparel Parks Limited Background
KAPL was incorporated in India on November 18, 2021, and registered in Hyderabad. Its business operations in textile items commenced during the FY 25-26. The subsidiary had a Paid-up Capital of Rs. 601,79,00,000, and its turnover from business operations was nil until FY 24-25.
Source: BSE
