Gokaldas Exports recently said it will invest in fabric manufacturer BRFL Textiles Private Ltd by subscribing through optionally convertible debentures (OCDs), and based on certain conditions will also look at exploring a possible merger or acquisition on June 30, 2025.
In the first tranche, Gokaldas Exports will subscribe to OCDs worth Rs. 50 cr, while the remaining OCDs worth up to Rs. 300 cr will be subscribed subsequently in multiple tranches, depending on the funding requirement, the company said in a stock exchange filing. The funds will primarily be utilised to meet the working capital needs, with a smaller portion going towards capex requirements.
“Further, subject to fulfilment of certain conditions and receipt of applicable regulatory, statutory, or other required approvals/consents, a possible merger or acquisition will be explored by June 30, 2025,” it added. The company said that with the strategic investment in BRFL Textiles, it intends to stand largely self-reliant in fulfilling its raw material requirements for manufacturing.
“BRFL Textiles comes with excelling 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 specialised prints and yarn-dyed fabrics that are synergistic with our internal needs,” Gokaldas Exports said, adding that the BRFL Textiles infrastructure supports the production of knits, wovens and all fibre types.
The company said investment in a fabric processing mill will play an important strategic step for it as it expects this investment to accelerate its growth. Gokaldas Exports shares ended 0.34% lower at Rs. 832.4 apiece recently. The stock has gained nearly 62% in the past year.
