To invest Rs 50 cr in first tranche
Gokaldas Exports (GEX) has agreed to invest in BRFL Textiles (BTPL) by subscribing through Optionally Convertible Debentures (OCD). In its first tranche, GEX 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 30 June 2025.
The company said, "In the present business environment, customers require speed, flexibility, and agility and prefer to associate with suppliers who operate with an end-to-end integrated business model. With the strategic investment in BTPL, we intend to stand largely self-reliant in fulfilling our raw material requirements for manufacturing. BTPL comes with excellent 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 specialized prints and yarn-dyed fabrics that are synergistic with our internal needs. The infrastructure supports the production of knits, wovens, and all fibre types.
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."
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