Shares of Gokaldas Exports rose nearly 5 percent on June 20 following the company’s announcement of an investment in fabric manufacturer BRFL Textiles Pvt Ltd through optionally convertible debentures (OCDs). According to an exchange filing on June 19, Gokaldas Exports will also consider a possible merger or acquisition by June 30, 2025, contingent on certain conditions.
At 9:22 am, Gokaldas Exports shares were up 2 percent at Rs 848. Despite this rise, the stock has declined 3 percent over the past six months, underperforming the Nifty 50 index, which gained 10 percent during the same period.
In the initial tranche, Gokaldas Exports will subscribe to OCDs worth Rs 50 crore, with the remaining OCDs worth up to Rs 300 crore to be subscribed in multiple tranches based on funding requirements. The funds will mainly address working capital needs, with a smaller portion allocated to capital expenditures.
Investment in BRFL Textiles will enable Gokaldas Exports to become self-reliant in sourcing raw materials for manufacturing. BRFL Textiles, known for its state-of-the-art infrastructure, world-class machinery, and expertise in linen manufacturing, specializes in prints and yarn-dyed fabrics that align with Gokaldas Exports’ needs.
“This investment in a fabric processing mill is a significant strategic step for the company,” Gokaldas Exports stated. “Furthermore, subject to certain conditions and required approvals, a possible merger or acquisition will be explored by June 30, 2025.”
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