Reliance PE-backed kitchen appliance maker Butterfly Gandhimathi Appliances Ltd is buying a unit from its promoter's privately held company LLM Appliances Ltd through a slump sale for an undisclosed amount, according to a stock market disclosure.
Founded in 1986, Chennai-based Butterfly Gandhimathi Appliances (earlier known as Gandhimathi Appliances Ltd) undertook a merger with Gangadharam Appliances Ltd (which had the same promoters) and renamed itself Butterfly Gandhimathi Appliances in October 2011.
The company, which is a part of Butterfly group of companies, makes home appliances, kitchen products and cookware under the Butterfly brand. It exports the products to the UK, Canada, Australia, Japan, Middle East and the East Asian Countries, among others.
In March 2012, Reliance Equity Advisors India Ltd or Reliance PE invested $19.83 million in Butterfly Gandhimathi Appliances for 13.71 per cent stake.
In the appliance sector, Faridabad-based kitchen appliance maker Associated Appliances Ltd (AAL) is looking to raise around Rs 90 crore ($14.5 million) through an overseas convertible bond issue.
Butterfly churned out revenues of Rs 807 crore for the year ended March 31, 2013, as compared with Rs 642 crore in FY12. Its net profit rose around 10 per cent in the same period to Rs 33 crore.
The shares of Butterfly Gandhimathi Appliances were quoting at Rs 290.25 a unit, down 0.8 per cent in mid-day trades on BSE in a strong Mumbai marketon Monday.
(Edited by Joby Puthuparampil Johnson)