Mumbai, July 14: Anil Ambani is heading for a showdown with brother Mukesh once again. This time it is over his foray into textiles ? a preserve that has been earmarked for the elder scion under the the terms of the non-compete agreement between the two groups.

Anil Ambani’s Reliance Capital (RCL) is picking up a 14.8 per cent stake in loss-making Ventura Textiles and this could become a source of friction between the battling brothers as the non-compete agreement specifically bars the ADAG group from entering the petrochemicals segment, which includes textiles.

The investment in Ventura is the group’s second foray into the textiles segment. Ventura is a Mumbai-based company that makes bed linen, high-quality grey fabrics, including industrial canvas. Earlier, Reliance Capital Partners, a part of Reliance Capital, acquired 14.55 per cent in Maxwell Industries, the makers of the VIP brand of hosiery, for Rs 45 crore. Anil’s group argues the acquisition is for investment purposes.

Ventura Textiles told the bourses in a notice issued today that up to 5.15 crore shares would be allotted to RCL through private/preferential placement by way of one or more private offerings. Officials from Ventura said consequent to the preferential allotment, RCL’s stakeholding in the company would stand at 14.84 per cent. However, Ventura will also be issuing redeemable debentures worth Rs 21 crore to RCL that can be converted into shares later.

The optional fully convertible debentures have a tenure of 36 months. Ventura officials said RCL could decide within 12 to 18 months whether or not to convert the debentures to shares. In the event that RCL opts for the conversion, it will have to make an open offer as its holding in the company will cross 15 per cent.

Apart from RCL, Ventura is also issuing 2.50 crore shares to the Stressed Asset Stabilisation Fund (SASF) as part of the one-time settlement of the company’s liability to the SASF. The fund’s stake in the company will stand at 7.20 per cent.

Sources from the Reliance ADAG denied they were going against the spirit of the agreement. “These are purely of an investment nature. RCL has been making investments in a number of companies. They purely are in the nature of private equity and are not strategic at all. Our group has always been adhering to the non-compete clause,” an official, who did not wish to be identified, said.

Officials from Mukesh’s group said they would not like to comment on the matter.