Latest News | Gokaldas Exports Shares Jump 20 Pc as Co to Buy UAE-based Apparel Maker Atraco
Get latest articles and stories on Latest News at LatestLY. Shares of readymade garment manufacturer and exporter Gokaldas Exports Ltd (GEL) on Tuesday jumped 20 per cent after the company said it has entered into an agreement through its wholly-owned subsidiaries to acquire Atraco Group for USD 55 million.
New Delhi, Aug 29 (PTI) Shares of readymade garment manufacturer and exporter Gokaldas Exports Ltd (GEL) on Tuesday jumped 20 per cent after the company said it has entered into an agreement through its wholly-owned subsidiaries to acquire Atraco Group for USD 55 million.
The stock rallied 20 per cent to settle at Rs 736.30 -- its 52-week high -- on the BSE.
On the NSE, it zoomed 20 per cent to end at its 52-week high of Rs 735.35 apiece.
Headquartered in Dubai, apparel manufacturer Atraco operates with a network of four manufacturing units in Kenya and one in Ethiopia, GEL said in a statement.
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, it 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.
"The acquisition of Atraco is an important step in this direction as it is strategically relevant, possesses a good complementary customer base, is operationally strong, and above all, a leader in its own sphere.
"With this acquisition, we will gain access to low-cost duty-free locations for manufacturing. Together, we can deliver a wider choice and value proposition to our global customers. We look forward to welcoming over 13,000 new members (employees of Atraco) into the GEL family," GEL Vice Chairman and Managing Director Sivaramakrishnan Ganapathi said.
Currently, GEL exports to more than 50 countries where its customers include prominent international brands in North America, South America, Europe, Africa, Oceania and Asian countries.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)