Kochi : Popees Group has announced a key development in its
corporate growth journey with the acquisition and renaming of Hari Govind
International Limited as Popees Baby Care India Limited. The move aligns the
listed entity with the Group's established business activities in the baby care
and kidswear segment and forms part of its broader business integration
strategy.
The Board of Popees Baby Care India Limited (formerly Hari
Govind International Limited) has considered and deliberated upon a proposed
strategic acquisition and investment transaction involving Popees Baby Care
Products Limited (PBCPL). The proposed transaction is intended to be undertaken
through a share swap arrangement by way of a preferential issue of securities
of the listed company for consideration other than cash, subject to receipt of
requisite statutory, regulatory, and shareholder approvals.
The proposed transaction seeks to bring the operating
business of Popees Baby Care Products Limited under the listed entity, creating
a unified corporate structure for the Group's baby care and kidswear
operations.
As part of the deliberations, the Board reviewed the
valuation parameters, commercial terms, and indicative swap mechanism for the
proposed transaction. Based on preliminary assessments, an indicative share
swap ratio of approximately 1.3:1 has been discussed, subject to final
valuation reports, fairness opinions, due diligence findings, negotiated
transaction documents, and applicable statutory and regulatory approvals. The
company has clarified that the swap ratio is indicative in nature and will be
subject to final determination and approval by the Audit Committee.
Popees Baby Care Products Limited, which is proposed to be
integrated into the listed entity, reported provisional gross revenue of
₹162.40 crore and revenue from operations of ₹162.01 crore for the financial
year ended March 31, 2026. EBITDA stood at ₹29.96 crore, while profit before
tax was ₹23.63 crore and profit after tax was ₹18.31 crore. For FY25, the
company reported gross revenue of ₹136.03 crore, revenue from operations of
₹135.30 crore, EBITDA of ₹18.12 crore, profit before tax of ₹10.44 crore, and
profit after tax of ₹7.37 crore. For FY24, gross revenue stood at ₹123.18
crore, EBITDA at ₹11.47 crore, profit before tax at ₹2.65 crore, and profit
after tax at ₹1.83 crore.
Popees Baby Care India Limited (formerly Hari Govind
International Limited) reported provisional gross revenue and revenue from
operations of ₹2.60 crore for FY26. The company reported profit before tax of
₹0.10 crore and profit after tax of ₹0.08 crore during the period.
The proposed integration is expected to enable the
consolidation of business operations under the listed entity and provide a
platform for the Group's future business plans in the baby care and kidswear
segment. The transaction would also align the listed company's activities with
the operating business of the Popees Group.
Over the years, Popees has established a presence in the
baby apparel and childcare products segment through its portfolio of baby
clothing, infant care products, and related offerings. According to Tracxn, the company is among the tracked
players in India's baby and maternity wear segment and is ranked among the
leading companies in the category. The proposed transaction represents a step
towards integrating these operations within a listed corporate structure.
The proposed acquisition and share swap arrangement remain
subject to completion of due diligence, valuation exercises, fairness opinions,
execution of definitive agreements, and receipt of applicable statutory,
regulatory, and shareholder approvals.
Upon completion of the proposed transaction and receipt of
necessary approvals, Popees Baby Care Products Limited is expected to be
integrated with Popees Baby Care India Limited, bringing the Group's operating
business under the listed entity.