VCCircle

How many of you know Maxwell Industries? I bet, not many. By the way, Maxwell is the company which owns some of India's best known innerwear brands. It has VIP and Rivolta under its belt. Strangely, Maxwell, promoted by JK Pathare and the Reddy families, was completely under the radar till very recently.

A few months back, when I was at Business Today magazine, I had written about this company as one of the value picks. It was an undervalued stock, because few stock investors had heard of the company. Subsequently, however, after the reorganisation of the company, the stock caught the fancy of investors and it ran up from Rs 60 to Rs 300-levels in a matter of three or four months.

Anyways, before digressing from the news, the company has got Rs 45 crore ($10 million) investment from Reliance Capital Partners, part of the Anil Ambani-controlled Reliance Capital Group, which would acquire 14.55 per cent stake.

A company release to the Bombay Stock Exchange says, the equity infusion will help achieve financial closure for its planned Rs 250 crore ($55.5 million) expansion. It plans to launch a few more international brands in India and start export outsourcing projects.

Singhi and Associates Advisors Pvt Ltd. acted as advisors for this transaction. [Read the BSE announcement here]

Post script: I am not sure about the recent news item (The Times of India reported) that Actis had picked up 20 per cent in Maxwell. If that's right, the company should have informed the stock exchange. It hasn't yet.