House of Pearl Fashions Ltd (HOPFL) has announced that the Company has signed a Memorandum of Understanding (MoU) to acquire 75% stake in the Hong Kong-based marketing Company, Simple Approach Ltd. The Company has been working at strengthening its distribution muscle in the overseas markets.

The acquisition will benefit the Company in expanding its customer base into high fashion mid market segment. TopNews had recommended the stock in December last year. The stock has gained decently over the last couple of weeks.

India-based, HOPFL is a multinational ready to wear apparel manufacturing conglomerate. The company also provides supply chain solutions for the fashion industry globally along with warehousing & distribution networks in the UK & US.

While, Simple Approach is supplying to value and mid market retailers in the UK and the USA and will be clocking revenues of Rs 80 crores in the current financial year. The company officials expect the revenue to grow to Rs 100 crores in the FY 2008-09 and have projected further growth to Rs 200 crores by FY 2010-11.

At 2:05 pm, the stock was quoting at Rs. 298 on BSE, up 5% or Rs. 14 from its previous close of Rs. 284. It touched an intraday high of Rs. 310 and low of Rs. 283.