Gokaldas Exports to invest Rs 350 crore in BRFL Textiles, shares climb nearly 5%

Gokaldas Exports shares have fallen 3 percent in the past six months, underperforming the Nifty 50 index which gained 10 percent during the same period.

Shares of Gokaldas Exports rose nearly 5 percent on June 20 after the company said it would invest in fabric manufacturer BRFL Textiles Pvt Ltd by subscribing through optionally convertible debentures (OCDs). Based on certain conditions, Gokaldas will also explore a possible merger or acquisition on June 30, 2025, the company said in an exchange filing on June 19.

At 9.22 am, shares of Gokaldas Exports traded 2 percent higher at Rs 848. The stock has fallen 3 percent in the past six months, underperforming the Nifty 50 index which gained 10 percent during the same period.

In the first tranche, Gokaldas Exports will subscribe to OCDs worth Rs 50 crore, while the remaining OCDs worth up to Rs 300 crore will be subscribed in multiple tranches, depending on the funding requirement.

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The funds will primarily be used to meet the working capital needs, with a smaller portion going towards capital expenditure requirements.

Investment in BRFL Textiles, will help Gokaldas Exports become self-reliant in meeting its raw material needs for manufacturing. BRFL Textiles boasts top-notch infrastructure, including world-class machinery and expertise in linen manufacturing. BRFL Textiles specialises in prints and yarn-dyed fabrics that align perfectly with Gokaldas Exports' internal requirements.

"At this point, investment in a fabric processing mill would play an important strategic step for the company," Gokaldas Exports said.

"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," the company said.

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