Gokaldas Exports Ltd Share Price – NSE  /  BSE

Readymade Garments/ Apparells, Small Cap

Gokaldas Exports has allotted 2,33,333 equity shares under ESOP on 08 July 2024. With this allotment, the paid up share capital stands increased to 35,70,40,640 divided into 7,14,08,128 equity shares of Rs.5/- each.

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BRFL Textiles (BTPL) is engaged in the business of manufacture and sale of textiles and operates a dyeing, printing and fabric processing facility at Palghar, Maharashtra. It is primarily engaged in the production and sale of fabric in the Indian domestic market under the brand names 'LinenVogue-La Classe’, 'Giza Classe’ and 'Bombay Rayon’ through distributors, traders and garment manufacturers.

BTPL’s revenue from operations for FY 2023-2024 is approximately Rs 473.88 crore.

In its first tranche, Gokaldas Exports (GEX) will subscribe for Rs 50 crore, with the remaining optionally convertible debentures (OCDs) worth up to Rs 300 crore to be subscribed subsequently in multiple tranches, depending on the funding requirements.

These funds shall be utilized mainly to meet the working capital needs, with a smaller portion towards the capex requirements.

Further, subject to the fulfilment of certain conditions and receipt of applicable regulatory, statutory, or other required approvals/consents, a possible merger or acquisition will be explored by 30 June 2025.

Offering the rationale for the said investment, Gokaldas Exports stated that in the present business environment, customers require speed, flexibility, and agility and prefer to associate with suppliers who operate with an end-to-end integrated business model.

With the strategic investment in BTPL, we intend to stand largely self-reliant in fulfilling our raw material requirements for manufacturing.

BTPL comes with excellent infrastructure in terms of machinery and configurations, world-class machinery, and specialisation in linen manufacturing. It is well known in the fabric processing segment and has specialized prints and yarn-dyed fabrics that are synergistic with our internal needs. The infrastructure supports the production of knits, wovens, and all fibre types.

We believe that investment in BTPL would accelerate GEX’s growth, leveraging the unique capabilities of BTPL. At this point, investment in a fabric processing mill would play an important strategic step for the company,” GEX said in a statement.

Gokaldas Exports is engaged in manufacturing and exporting of readymade garments for men, women, and children and caters to the needs of several leading international fashion brands and retailers. The company has more than 20 manufacturing facilities, primarily in and around Bangalore.

The company had reported 6.17% fall in consolidated net profit to Rs 44.28 crore despite a 55.34% increase in revenue to Rs 812.42 crore in Q4 FY24 as compared to Q4 FY23.

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Gokaldas Exports (GEX) has agreed to invest in BRFL Textiles (BTPL) by subscribing through Optionally Convertible Debentures (OCD). In its first tranche, GEX will subscribe for Rs 50 crore, with the remaining OCDs worth up to Rs 300 crore to be subscribed subsequently in multiple tranches, depending on the funding requirements. These funds shall be utilized mainly to meet the working capital needs, with a smaller portion towards the capex requirements. Further, subject to the fulfilment of certain conditions and receipt of applicable regulatory, statutory, or other required approvals/consents, a possible merger or acquisition will be explored by 30 June 2025.

The company said, In the present business environment, customers require speed, flexibility, and agility and prefer to associate with suppliers who operate with an end-to-end integrated business model. With the strategic investment in BTPL, we intend to stand largely self-reliant in fulfilling our raw material requirements for manufacturing. BTPL comes with excellent infrastructure in terms of machinery and configurations, world-class machinery, and specialisation in linen manufacturing. It is well known in the fabric processing segment and has specialized prints and yarn-dyed fabrics that are synergistic with our internal needs. The infrastructure supports the production of knits, wovens, and all fibre types.

We believe that investment in BTPL would accelerate GEX's growth, leveraging the unique capabilities of BTPL. At this point, investment in a fabric processing mill would play an important strategic step for the company.

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Net profit of Gokaldas Exports declined 6.17% to Rs 44.28 crore in the quarter ended March 2024 as against Rs 47.19 crore during the previous quarter ended March 2023. Sales rose 55.34% to Rs 812.42 crore in the quarter ended March 2024 as against Rs 523.01 crore during the previous quarter ended March 2023.

For the full year,net profit declined 24.28% to Rs 130.97 crore in the year ended March 2024 as against Rs 172.97 crore during the previous year ended March 2023. Sales rose 7.05% to Rs 2378.88 crore in the year ended March 2024 as against Rs 2222.20 crore during the previous year ended March 2023.

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