Chennai, Dec 13 (PTI) Qatar-based F J Global and Investment belonging to the Royal family will pick up a 10 per cent stake in Kothari Industrial Corporation Ltd as it aims to tap growth opportunities and promote business globally.

The board of city-headquartered Kothari Industrial Corporation Ltd also approved the deal and following the agreement, F J Global and Investment, owned by Falah Jassim J M AL-Thani would pick 70,56,000 shares in Kothari Industrial Corporation Ltd.

Falah Jassim J M AL-Thani is a Promoter-Director of Doha Bank and also the Founder of Qatar Airways.

“The board has approved the allotment of the shares at ₹25 per share of the face value of ₹5 each,” KICL said in a statement on Friday.

The investment by Qatar-based Royal Family would give a significant boost to Kothari Industrial Corporation Ltd, which is engaged in the manufacturing of non-leather footwear and drones, the statement said.

The board of Kothari Industrial Corporation Ltd led by its Promoter Rafiq Ahmed, also decided to increase the authorised capital of the company to ₹75 crore from the current ₹25 crore, subject to the approvals from shareholders.

Ahmed, would invest more in Kothari Industrial Corporation Ltd so as to maintain his holding of shares at 47 per cent, the company said.

In another development, the board of KICL has cleared to acquire the 30 per cent shares held by Ahmed in Phoenix Kothari Footwear Ltd, which is engaged in the manufacturing of footwear. “This acquisition, however, is subject to relevant approvals and valuation. The board of KICL will initiate the process of getting all regulatory and shareholders’ approval for the same,” the statement said.

Phoenix Kothari Footwear Ltd (of Kothari Industrial Corporation Ltd) is setting up a non-leather footwear park in Perambalur district.

Under the strategic partnership with Royer Group of France, Kothari Industrial Corporation Ltd has signed a 30 year licensing and distribution agreement for the sales and marketing of ‘Kickers’ brand of footwear in India. The first Kickers brand store would be inaugurated in the city on December 14. “It is a landmark moment for footwear enthusiasts in India” Ahmed said on the inauguration of the store.

Besides serving the domestic market, the pact with Royer Group of France also allows KICL for exports to Sri Lanka, Maldives, Bhutan, Nepal, Qatar, the United Arab Emirates, among others, the statement added.