Gokaldas Exports Sustains Rally After Acquisition News, Achieves New 52-Week High

Indian frontline indices started the trading session with significant gains. Jio Financial Services took the lead, driving this surge, as shares of non-banking financial company (NBFC) hit the 5% upper circuit during the initial trades of the session. Telecommunications, auto, metals and real estate sectors all recorded substantial gains. 

The broader indices continued their trend of outperforming the main indices. Gokaldas Exports Ltd retained its position as one of the leading gainers in the BSE Smallcap pack, a day after hitting the upper circuit.  

The stock witnessed notable buying interest following the company’s announcement that it had, through its wholly owned subsidiaries, entered into a contract to acquire Atraco Group. Atraco Group is a prominent apparel manufacturer with a robust market presence and established customer relationships in both the U.S. and Europe. Their diverse product portfolio encompasses shorts, pants, shirts, t-shirts, blouses, and dresses, catering to various age groups. 

The company further stated that the transaction’s equity value amounts to USD 55 million. The funding for this transaction will be sourced from a combination of debt and internal accruals. 

Shares of the company are consistently reaching fresh 52-week highs. On an intraday basis on Wednesday, shares of Gokaldas Exports Ltd soared more than 11%, reaching a new 52-week high of Rs 817.20 per share on the BSE. In a span of only one month, shares have climbed around 50%, culminating in remarkable gains of more than 100% in the past year! 

Gokaldas Exports Ltd (GEL) holds a prominent position as a major manufacturer and exporter of ready-made garments in India. The company is involved in the design, production, and distribution of a diverse collection of ready-made garments for men, women, and children. The company’s reach extends to over fifty countries, with its customer base encompassing renowned international brands across North America, South America, Europe, Africa and various Asian countries. 

Keep a close eye on this stock for the upcoming sessions! 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.