Gokaldas Exports hits 2nd straight 5% upper circuit on nod for QIP issue

The company's board in its meeting on October 4, 2021, approved raising up to Rs 300 crore via QIP placement of shares, the floor price for the same was fixed at Rs 194.58 per share.

Shares of Gokaldas Exports were locked at the 5 upper circuit for the second straight day, at Rs 224.40 on Tuesday on the BSE after the company announced that it has approved fund raising to the tune of Rs 300 crore via qualified institutional placement (QIP).

The stock of textiles company had hit a 52-week high of Rs 236 on August 9, 2021. Till 09:29 am; a combined around 190,000 equity shares changed hands, and there were pending buy orders for 79,000 shares on the NSE and BSE.

At its meeting held on Monday, October 4, 2021, the fund raising committee of Gokaldas Exports approved the floor price for qualified institutional buyers (QIB) at Rs 194.58 per share for shares of par value of Rs 5 each.

A meeting of the fund raising committee of the board of directors is further scheduled to be held on Thursday, October 7, 2021 to consider and approve the final issue price. Pursuant to Regulation 176(1) of the Sebi ICDR Regulations, the company may offer a discount of not more than 5 per cent on the floor price so calculated for the issue, it added.

The company intends to use the net proceeds of QIP issue for, repayment or prepayment of all or a portion of borrowings, financing working capital requirements, inorganic growth opportunities in respect of company’s operations and for making, strategic acquisitions, entering into a new business in line with the company’s strategies and general corporate purposes.

Gokaldas Exports is a leading readymade garment manufacturer and exporter in India, engaged in the business of design, manufacture and sale of a wide range of readymade garments (outerwear, active wear and fashionwear) for men, women and kids, for all seasons.