Structuring a Clean Exit for a Listed Textile Company

Background

This Mumbai based listed textile company has been in the business for decades , manufacturing fabrics, uniforms, and garments through its own and outsourced operations. It’s one of those steady, quietly successful companies that has seen every cycle of the Indian textile story.

Over time, though, the promoter group grew diverse. Different family branches, different visions for where to take the business next. Some wanted to stay the course. Others were ready to step away and realise value from the years of work they had put in.

That’s where Mantraa came in , to design a structure that made the exit possible without destabilising the company.

The Challenge

Exits inside family led listed companies are rarely simple. There were multiple shareholders involved, a complex shareholding pattern, and strict regulatory conditions to consider. The goal was to carve out an exit route for one set of shareholders while keeping compliance airtight and ensuring business continuity.

The promoters didn’t want conflict or long legal back and forth. They wanted a structure that was clean, defensible, and accepted by regulators and auditors alike.

Mantraa’s Role

Mantraa worked closely with the promoters, auditors, and legal advisors to build the framework for the transaction.

The first step was to study the entire shareholding and holding company pattern, identifying how the exit could be executed without triggering compliance issues or market disruptions. We then drafted a structuring plan that clearly outlined how shares would be transferred, how value would be settled, and how both sides could move forward smoothly.

Throughout the process, Mantraa acted as the coordinating CFO arm, ensuring filings, valuations, and communications were handled properly and that the process stayed transparent to all stakeholders.

The Impact
The exit was completed without dispute or delay. One promoter group was able to step away cleanly, while the rest retained control and stability within the business. For a listed company, that kind of smooth transition is rare. The management could get back to running operations instead of dealing with legal and structural noise. The market saw continuity, not conflict.
Key Takeaway
When family businesses reach the public market stage, structure becomes everything.
Mantraa’s role was to make sure a sensitive transition happened quietly, correctly, and without value leakage, proof that exits can be calm when the groundwork is right.
Looking Ahead
The company continues to run operations under the remaining promoter group with stronger governance and cleaner ownership. Mantraa remains an advisory partner, guiding the team on compliance and financial planning to ensure the structure stays future ready.