Gokaldas Exports shares jump 5% on ₹350 crore investment plan in BRFL Textiles

The company will also explore a possible merger or acquisition on June 30, 2025, Gokaldas Exports said in an exchange filing.

"In its first tranche, GEX will subscribe for ₹50 crores, with the remaining OCDs worth up to ₹300 crores to be subscribed subsequently in multiple tranches, depending on the funding requirements," the company said.

The funds will primarily be used for meeting the working capital needs of BRFL Textiles. Further, a portion of the funds may also be used towards the capex requirements.

After the announcement, shares of Gokaldas Exports gained as much as 5% to hit an intraday high of ₹873 apiece on the NSE. However, the stock pared some gains to trade 3.96% lower at ₹864.8 apiece at 12:55 pm.

Gokaldas Exports said that the strategic investment in BTPL will help it become self-reliant in fulfilling its raw material needs for manufacturing.

BTPL boasts of a robust infrastructure in terms of machinery and configuration and specialises in linen manufacturing. The company is a key player in the fabric processing segment and has expertise in prints and yarn-dyed fabrics.

"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," Gokaldas Exports said.

Gokaldas Exports is among the largest manufacturers and exporters of apparel in India, currently exporting to over 50 countries.

The company posted a total income from operations of ₹2,378.88 crore, up from ₹2,222.20 in the previous financial year.

Gokaldas Exports' net profit in FY24, however, slipped to ₹130.97 crore, down from ₹172.97 in FY23.