Singapore based GIC Special Investment has bought 25.4% equity stake in Reid & Taylor.

The equity stake was purchased for Rs 9 billion out of which Rs 7.4 billion would be received as an equity at the commencement of transactions. GIC Special Investments (GIC SI) would invest Rs 900 crore in Reid & Taylor through a fresh issue of shares and warrants.

The sold off 25.4% shares were valued at Rs35.4 billion while remaining 76.4% will be held by S.Kumars. These are valued at Rs 26.4 billion. RTIL equity shares would be issued at Rs695.18 to GIC SI.

Reid & Taylor will use the funds to further expand his textile business. It will help textile major to strengthen its position in the luxury fabric and apparel segment. It  will also introduce new brand in market in future as a part of expansion of business.

Reid & Taylor is planning to set a new textile plant which will manufacture new suits and garments. The proceeds of the investment would also be utilized for upgrading Reid & Taylor (India)'s Mysore facility. The mill has a capacity of 8, 40,000 meters and company wants its capacity to1340000 meters per annum. The balance funds will be used for debt repayment of both S Kumar and RTIL beside enhancing manufacturing capacity and introducing new operating lines.

Shares of S Kumar and RTIL were traded at Rs76.1 with decline of Rs1.2, or 1.55% at Bombay Stock Exchange (BSE).