The news report is based on the information given by two persons who are familiar with the discussions being held between the two companies. The two, who did not want to be identified because the deal is still in the making, declined to name the Japanese firm.
New company will supposedly issue fresh shares to the Japanese partner to raise at least $120 million (Rs5.6billion), one of the persons said.
The structure is contemplated in such a way that both companies will own equal stake, with the public also owning some shares through a new public offering, this person added.
The newspaper, Mint has not been able to ascertain the reason for the restructuring and sale so far, with the company refusing to comment.
The deal between IVL, which makes the Rivera, Tiger Hills,Chantilly and Ivy brands of wines as also the famous MDP sparkling wine, and the Japanese firm could be finalized in around a month, the first person said, according to this report.
The company has been in deep financial crisis recently due to over-comitments. The sales of wine has been significantly down from last year with the distributors stuck with inventories that may have lost the sheen, lying in the warehouses under imporper storage conditions.The company has also been closing their offices and reportedly plans to keep only the Mumbai office operational, in a move to cut costs.
The veracity of the going - ons can be gauged by the continuous rise in the share prices. Today, shares of Indage Vintners hit the upper circuit breaker of Rs.99.90 in the early trade, significantly higher than the low of 39.40 hit only a few weeks ago on the BSE. |