Gokaldas Exports shares settle 18% higher; hit 52-week high for 2nd day

Extending its rally for the second straight session, shares of Gokaldas Exports on Wednesday settled more than 18 per cent higher a day after the company said it has entered into an agreement through its wholly-owned subsidiaries to acquire UAE-based Atraco Group.

The stock of the company opened on a bullish note at Rs 780, then gained further ground and rallied 18.68 per cent to close at Rs 873.85 apiece on the BSE.

On the NSE, it zoomed 14.78 per cent to end at Rs 844 per share.

During the day, it touched a 52-week high of Rs 883.55 and 882.40 per piece on the BSE and NSE, respectively, for the second consecutive day.

On the volume front, 8.46 lakh shares were traded on the BSE, while more than 1.21 crore shares were traded on the NSE, during the day.

The company commanded a market valuation of Rs 5,300.03 crore on the BSE.

The 30-share BSE Sensex and Nifty closed on a flat note at 65,087.25 and 19,347.45 points, respectively.

On Tuesday, Readymade garment manufacturer and exporter Gokaldas Exports Ltd (GEL) said it has entered into an agreement through its wholly-owned subsidiaries to acquire Atraco Group for USD 55 million.

The equity value of the transaction is USD 55 million (around Rs 455 crore) and the same will be funded by a mix of debt and internal accruals, the company said.

The transaction will consist of the acquisition of shares and assets and will be subject to customary regulatory approvals. It is expected to be completed by the third quarter of FY24 (October-December 2023), it added.

Currently, GEL exports to more than 50 countries and its customers include prominent international brands in North America, South America, Europe, Africa, Oceania and Asian countries.

The company has over 20 manufacturing facilities, complemented by five integrated ancillary units.