Gokaldas Exports to invest Rs 300 cr in BRFL, Maharashtra.

Bengaluru-based Gokaldas Exports (GEX) announced a strategic partnership with BRFL Textiles, a fabric processing company with a large plant in Tarapur, Maharashtra. GEX will invest up to Rs 300 crore in BRFL through Optionally Convertible Debentures (OCD), starting with an initial tranche of Rs 50 crore. Further investments will be made based on funding needs, and a potential merger will be considered in a year.

This investment marks GEX’s third major acquisition following the purchases of Dubai-based Atraco Group in August 2023 and Matrix Design and Industries Pvt Ltd in February 2024. Additionally, GEX raised Rs 400 crore via a QIP issue in April 2024.

The funds from the investment in BRFL will primarily address working capital needs and some capital expenditure. Siva Ganapathi GEX Vice Chairman and Managing Director stated this move aims to enhance self-reliance in raw material procurement and accelerate GEX's growth by leveraging BRFL's capabilities. BRFL boasts of advanced machinery and expertise in linen manufacturing, specialized prints, and yarn-dyed fabrics, aligning with GEX’s needs. Following the announcement, GEX’s stock rose over 4 per cent, closing at Rs 865.90, with a market capitalization of Rs 6163 crore.