Gokaldas Exports To Invest in Bombay Rayon Fashion Textiles Worth INR 350 Crore In order to fortify its supply chain amid stiff competition, Gokaldas Exports has announced INR 350 crore investment in Bombay Rayon Fashion Textiles.
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Gokaldas Exports is set to infuse up to INR 350 crore into Bombay Rayon Fashion Textiles through optionally convertible debentures (OCDs), as per a recent regulatory filing. Initially, Gokaldas will invest INR 50 crore in OCDs, with the remaining amount to be subscribed based on future funding needs.
Additionally, the company is considering a potential merger by June 30, 2025, with a total valuation of INR 587.50 crore, contingent upon meeting certain regulatory and operational milestones. The primary use of these funds by Bombay Rayon will be for working capital, with a smaller portion allocated for capital expenditures.
Gokaldas Exports is on a mission to establish a comprehensive supplier model and achieve self-sufficiency in sourcing raw materials through its INR 350 crore investment in Bombay Rayon. By leveraging Bombay Textile's expertise in specialized prints and yarn-dyed fabrics, Gokaldas aims to enhance its production capabilities across knits, wovens, and various fiber types.
In the quarter ending March 31, 2024, the company reported a consolidated profit after tax of INR 44.3 crore, with a total income soaring to INR 818 crore. This marks a significant leap from the same period in 2023, where it posted an after-tax profit of INR 47.2 crore and a total income of INR 530.1 crore, as per YourStory. The growth in total income highlights the company's robust expansion and strategic prowess and its recent investment showcases the vision going forward.
