Winsome Yarns Ltd, a Chandigarh-based yarn manufacturing company, is selling its knitting division to a Middle East-based company for an undisclosed amount, as per a stock market disclosure.
The firm had mandated a Singapore-based investment bank to scout for buyers for the unit. It has received a letter of intent from a leading apparel manufacturing company with operations based out of various locations in Middle East to buy the division, it disclosed on Monday.
“The company has initiated required steps to facilitate the transaction," it added.
Founded in 1990, Winsome Yarns is a part of Kolkata-based Winsome Group and produces raw white yarn, melange yarn, dyed yarn and knitwear. It’s a small cap public listed firm.
Two weeks ago, the firm said it is in “advanced stages of negotiation with two parties who intend to acquire majority stake in the knitting division of the company."
In May 2013, the firm had decided to undertake an internal restructuring to improve efficiency and ensure better financial management.
(Edited by Joby Puthuparampil Johnson)