The shares of the small-cap company gained up to 5 percent after the company announced its strategic tie-up with BRFL Textiles Pvt Ltd (BTPL).
With a market capitalization of Rs 6,177.26 crore, the shares of Gokaldas Exports Ltd were trading at Rs 869.95 per share, increasing around 4.21 percent as compared to the previous closing price of Rs 831.80 apiece.
According to the comp[any filing, Gokaldas Exports Ltd has agreed to invest in BRFL Textiles Private Limited (BTPL) by subscribing through Optionally Convertible Debentures (OCD). In its first tranche, GEX will subscribe for ₹ 50 crores, with the remaining OCDs worth up to ₹ 300 crores to be subscribed subsequently in multiple tranches, depending on the funding requirements.
Furthermore, these funds shall be utilized mainly to meet the working capital needs, with a smaller portion towards the capex requirements. Moreover, this investment in BTPL would accelerate GEX’s growth, leveraging the unique capabilities of BTPL. the company said at this point, investing in a fabric processing mill would be an important strategic step for the company.
Looking forward to the company finances, revenue magnified drastically by 55 percent from Rs 523 crore in Q4FY23 to Rs 812 crore in Q4FY24 but during the same period of time, net profit plummeted by 6 percent from Rs 47 crore to Rs 44 crore.
The firm exports to over 50 nations. Following the acquisition of Atraco and Matrix, Gokaldas Exports now has over 30 manufacturing facilities and more than 30,000 modern machines capable of producing around 87 million garments yearly.
As per the recent investor presentation, the company has commissioned Phase I of a sewing factory in Bhopal, Madhya Pradesh, situated on a 10-acre land. The Phase I facility has the capacity to manufacture 3 million pieces per annum, with Phase II of another 3 million pieces per annum expected to be commissioned in the next calendar year.
Gokaldas Exports Limited sells a variety of garment goods, including outerwear, activewear, and stylish wear. It exports to fashion labels and stores on all continents and has a delivery network spanning 50+ countries.
Written by:- Abhishek Singh
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