June 17, 2024
Corporates

Gokuldas Acquires Matrix Clothing’s Knit Apparel Business

One of the biggest Indian garment exporters Gokuldas Exports Ltd (GEL), will acquire the knit apparel business of Matrix Clothing Private Ltd (MCPL) for an enterprise value amounting to Rs 489 crore.

Of this Rs 489 crore, Rs 247.5 crore is being paid by way of preferential allotment of shares of Gokaldas Exports through a share swap.

The GEL Board also approved an issue of 2.73 million equity shares of the company at Rs. 901.14 per share to MCPL.

GEL gets access to the knit garment business segment, a mutually exclusive global customer base, greater access to European and the UK markets and geographical diversification through this deal.

“We have always believed in continuously adding production capacity at strategic locations enhancing our value proposition to our valued customers, GEL MD Sivaramakrishnan Ganapathi said.

“The acquisition of Matrix is an important step in this direction as it is strategically relevant, possesses a good complementary customer base, operationally strong, and above all, a leader in its own sphere,” he added.

GEL recently released its third fiscal quarter result in which its revenue rose 6 percent year on year to Rs 559.8 crore, but net profit dived 25 percent from a year ago quarter to Rs 30.4 crore.

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