Gokaldas Exports shares surge 5% on strategic tie-up with BRFL Textiles

Shares of Gokaldas Exports surged 5% to Rs 873 on the National Stock Exchange (NSE) during Thursday’s intraday trade. This rise comes after the company announced a strategic partnership with BRFL Textiles Private Limited (BTPL), one of India’s largest fabric processing companies.

With this strategic investment, Gokaldas Exports aims to become largely self-reliant in fulfilling its raw material needs for manufacturing. The management believes that this move will accelerate Gokaldas’ growth by leveraging BTPL’s unique capabilities. Investing in a fabric processing mill marks a significant strategic step for the company.

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In the first tranche, Gokaldas Exports will subscribe to Rs 50 crore in Optionally Convertible Debentures (OCDs). The remaining OCDs, worth up to Rs 300 crore, will be subscribed in multiple tranches based on funding requirements. These funds will primarily meet working capital needs, with a smaller portion allocated to capital expenditure. Additionally, subject to certain conditions and approvals, a potential merger or acquisition will be explored by June 30, 2025.

Gokaldas Exports, with an annual revenue of Rs 2,379 crore in FY24, is one of India’s largest apparel manufacturers and exporters, supplying to over 50 countries. Following the acquisition of Atraco and Matrix, the company now operates over 30 production units and boasts more than 30,000 advanced machines capable of producing about 87 million garments annually.

As of 11:35 am, Gokaldas Exports shares were trading 3.85% higher at ₹863.85 on the NSE.