New Delhi: Azim Premji, chairman of Bangalore-based software company Wipro Ltd, has acquired nearly a 1% stake in apparel manufacturer Koutons Retail India Ltd.
The total number of outstanding shares of the company is 3,05,51,397. Of that, Premji bought 2,96,402 shares, which amounted to about 1% of the total out standing shares of the company, Koutons Retail said in a filing to the Bombay Stock Exchange (BSE).
Wipro chairman Azim Premji (Photo by: Hemant Mishra / Mint)
“The acquisition by Azim Premji was because of the fact that in the retail sector, Koutons, with the largest chain of stores, is growing very fast,” Koutons chief financial officer Ajay Mahajan said.
Pointing out that the acquisition of stake by Premji is not a new one for Koutons, Mahajan said, “Some three-four months back Premji acquired around 1% stake in the company at the prevailing share price at that time”. Shares of Koutons were trading in the range of Rs 960-1,006 on the BSE at that time.
The company’s market capitalization on 23 April was Rs2,400 crore, the company said. At that level, the stake acquisition would have cost Premji more than Rs23 crore.
In 2005, Premji had acquired 3.76% in another textile firm, Himatsingka Seide Ltd. Premji had bought 800,000 shares of the silk yarn and fabrics maker at Rs136 a share from Arsaig Partners Asia Pte. then.
Koutons had raised over Rs100 crore from its recently concluded initial public offering. Its shares closed at Rs770.05 each, down 2.30%, on BSE.