Gokaldas Exports buzzing

Gokaldas Exports is buzzing today’ from its close of Rs.831.80, it opened higher at Rs.859.95 and rose to an intraday high at Rs.871.55, up 5%. Its 52-week high stands at Rs.1022.

The stock is in the green after it announced that it is investing in BRFL Textiles Pvt Ltd (BTPL) by subscribing through Optionally Convertible Debentures (OCD).

In its first tranche, Gokaldas 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 30th June 2025.

This acquisition is to largely fulfil its raw material requirements, making it largely self-reliant. BTPL’s infrastructure supports the production of knits, woven, and all fibre types and is expected that this investment in a fabric processing mill will be a strategic step ahead.