Gokaldas Exports board clears merger proposal with BRFL Textiles
Gokaldas Exports
Ltd has approved a draft scheme to merge
BRFL Textiles
Pvt Ltd (BTPL) with itself to create a vertically integrated
apparel and textile business
. The board cleared the proposal at its meeting on Saturday.
Under the scheme, BRFL Textiles shareholders will have the option to receive either 40 equity shares of
Gokaldas Exports
(face value Rs 5 each) for every 3,581 shares (face value Rs 10) held in BRFL, or a combination of stock and some cash wherein investors can opt to receive 30 Gokaldas shares plus Rs 8,952.50 in cash for the remaining 10 BRFL shares, the company said in a filing to the stock exchanges.
Productivity Tool
Zero to Hero in Microsoft Excel: Complete Excel guide
By Metla Sudha Sekhar
View Program
Finance
Introduction to Technical Analysis & Candlestick Theory
By Dinesh Nagpal
View Program
Finance
Financial Literacy i e Lets Crack the Billionaire Code
By CA Rahul Gupta
View Program
Digital Marketing
Digital Marketing Masterclass by Neil Patel
By Neil Patel
View Program
Finance
Technical Analysis Demystified- A Complete Guide to Trading
By Kunal Patel
View Program
Productivity Tool
Excel Essentials to Expert: Your Complete Guide
By Study at home
View Program
Artificial Intelligence
AI For Business Professionals Batch 2
By Ansh Mehra
View Program
The development comes at a time when Trump's 50% tariff shocker on Indian garments exports to the US has impacted the industry significantly.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Mix 3 Kitchen Ingredients, Wake Up Thinner Every Morning
Get Fit Today
Click Here
Undo
The two companies operate in complementary segments — Gokaldas in garment design, manufacturing and exports to leading global fashion brands, and BRFL in fabrics such as cotton, linen, viscose, polyester and blends under brands like Bombay Rayon, LinenVogue – La Classe, and Giza Classe.
BRFL has been valued at Rs 552 crores for 100% of its paid up equity capital.
Live Events
'The merger will help us with fabric capabilities,' said Sivaramakrishnan Ganapathi, CEO and Managing Director of Gokaldas Exports.' Fabric helps us improve margins, enable consistent fabric supply, give us faster response time to customers and in R&D in apparel innovation. Plus, we are getting a high-end capacity instead if waiting for a greenfield unit to come up. These are significant benefits.' It will consolidate resources and create economies of scale through backward integration,' the company said.
Last June, Gokaldas had agreed to buy 19% of BRFL Textiles by subscribing through Optionally Convertible Debentures (OCD). In its first tranche, Gokaldas subscribed for Rs 50 crore, with the remaining OCDs worth up to Rs 300 crore subscribed subsequently in multiple tranches, depending on the funding requirements. These funds shall be utilized mainly to meet the working capital needs, with a smaller portion towards the capex requirements
BRFL was recently formed as a separate entity in August 2020 as part of a restructuring process undertaken by Bombay Rayon Fashions Limited, in which it hived-off its yarn dyeing & fabric processing units located in Tarapur, into BTPL by way of a slump sale on a going concern basis. It received investments from JM Financial Group, Think Investments among others.
The merger will result in a vertically integrated business model, enabling Gokaldas to secure a consistent and quality supply of fabrics for its garment manufacturing operations, it said. The scheme is subject to approvals from stock exchanges, the National Company Law Tribunal, shareholders and creditors.
As of March 31, 2025, BRFL Textiles had total assets of Rs 877.13 crore, net worth of Rs 147.57 crore and turnover of Rs 371.42 crore. Gokaldas Exports reported assets of Rs 2,763.37 crore, net worth of ?2,144.92 crore and turnover of Rs 2,476.70 crore. Its current market value is Rs 5238 crore on BSE.
Shares of textile names like Gokaldas Exports Ltd., Pearl Global Ltd., Indo Count Industries Ltd., KPR Mill Ltd., Welspun Living Ltd., among others fell as much as 5% on Thursday, August 7, after US President Donald Trump signed an executive order to double the tariff rate on India to 50% from 25% earlier. On Friday, Gokaldas shares closed at ?715, down from the previous close of ?721. Year to date the stock is down 39%.
Gokaldas was the first acquisition of Blackstone in India. It was turned around much later by Florintree Advisors, the investment firm of Mathew Cyriac. A widely held company, mutual funds hold 31.58% stake in Gokaldas. Foreign Institutional Investors (FIIs) hold 24.89%, Insurance companies hold around 4.73%. Major public shareholders include fund houses such as Nippon India (7.38%), SBI Magnum Children's Benefit Fund (7.20%), Goldman Sachs (5.3%), and HSBC Business Cycles Fund (4%). Currently, the promoters of the company include Clear Wealth Consultancy Services LLP that holds 8.83% stake and Gautham Madhavan who holds 0.34% stake.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
11 minutes ago
- Economic Times
In 2019, Rs 50K was gold and now it can't pay rent: CA explains why most are struggling, not 'surviving' in urban cities
Synopsis Chartered Accountant Nitin Kaushik has warned that in 2025, earning less than Rs 50,000 a month in metros like Bengaluru, Mumbai, or Pune means barely covering basic expenses. He says rent alone swallows 40-60% of income, with essentials and lifestyle costs doubling in three years. Bengaluru's prime-area rents have surged up to 100% since 2022. Kaushik estimates singles need Rs 20-30 lakh annually for comfort, families Rs 40-50 lakh. Even Rs 1 lakh earners struggle, prompting his call for upskilling, smart budgeting, and early investment. TIL Creatives Representative AI Image Living in India's largest cities has become a battle to stay afloat. Chartered Accountant Nitin Kaushik says that in 2025, a monthly income below Rs 50,000 in Bengaluru, Mumbai, or Pune means 'barely breaking even' rather than on X, he warned that rents alone consume 40-60% of many urban salaries. Add transport, food, and utilities, and there is little left over. 'Living in a metro today without a strong salary equals financial pressure 24x7,' Kaushik wrote. — Finance_Bareek (@Finance_Bareek) Bengaluru, long considered India's tech capital, has seen one of the sharpest rent hikes. Kaushik pointed out that in prime neighbourhoods, one-bedroom flats that cost around Rs 18,000 a month in early 2022 now exceed Rs 30,000. That is an increase of 70-100%.He linked the rise to several factors — the return to office after COVID, a wave of job relocations, and growing real estate demand from NRIs and investors. Kaushik also highlighted that the price of essentials such as food, energy, and transport has stayed high. Combined with lifestyle spending, this has made metro living nearly twice as expensive as it was just three years ago. For those hoping to live comfortably, Kaushik estimates that in 2025, a single person in Bengaluru would need a CTC of Rs 20-30 lakh a year. For a family with one child, that figure rises to Rs 40-50 lakh, which he says would cover good housing, schooling, leisure, and savings. Kaushik warned that even households earning Rs 1 lakh a month are often stuck living paycheck to paycheck due to lifestyle expenses. His advice is direct: upskill to increase income, manage rent and commuting costs, start investing early, and look beyond headline salaries to focus on take-home pay after adjusting for living summed up the shift bluntly: 'Your Rs 50K/month in 2019 was gold. In 2025, it barely pays rent.'
Economic Times
11 minutes ago
- Economic Times
Supreme Court reserves verdict on JSW Steel's Rs 19,700 crore resolution plan for Bhushan Power
Synopsis The Supreme Court has reserved its verdict on JSW Steel's resolution plan for Bhushan Power and Steel. Key issues include the allocation of earnings generated during the resolution period and JSW's compliance with the plan. Former promoters challenged JSW's actions, while the creditors seek additional funds. The Solicitor General criticized the former promoters, alleging significant financial misconduct. iStock The Supreme Court on Monday reserved its verdict on a batch of pleas related to JSW Steel's Rs 19,700-crore resolution plan for debt-ridden Bhushan Power and Steel Limited (BPSL). A special bench comprising Chief Justice B R Gavai and Justices Satish Chandra Sharma and K Vinod Chandran heard arguments from Solicitor General Tushar Mehta for the committee of creditors (CoC), senior advocate Neeraj Kishan Kaul for JSW Steel, and senior advocate Dhruv Mehta for the former promoters before reserving the verdict. As many as five pleas were heard afresh after the CJI-led bench, on July 31, recalled its May 2 verdict that had directed liquidation of BPSL and set aside JSW's resolution plan, criticising the conduct of the CoC, the resolution professional, and the National Company Law Tribunal (NCLT) for what it termed a "flagrant violation" of the Insolvency and Bankruptcy Code (IBC). One of the key issues was whether earnings before interest, tax, depreciation, and amortisation (EBITDA) generated during the resolution period should go to the creditors or remain with the company. The CoC is seeking Rs 3,569 crore in EBITDA and Rs 2,500 crore in delay-related interest. Kaul, representing JSW, the successful resolution applicant, said neither the request for resolution plan (RFRP) nor the resolution plan itself mandated sharing EBITDA with creditors. He said JSW bid for BPSL on an "as is, where is" basis, accepting both its losses and profits, and that the delay in plan implementation was due to the ED's asset attachment, which was lifted only in December 2024. Dhruv Mehta, appearing for the former promoters, challenged JSW's compliance with the resolution plan and defended their right to participate in the proceedings, citing their role as personal guarantors. He alleged that JSW failed to inject the promised working capital and accused the company of benefitting from rising steel prices before implementing the plan. He also contended that the CoC's powers do not extend beyond plan approval by the NCLT and that disputes over non-compliance should be taken back to the tribunal. The solicitor general Mehta described the former promoters as having "brought the company to dust" and called this "one of the worst cases of siphoning" he had seen. He maintained that the CoC's claims over EBITDA and delay interest were justified and that the body remained a legal entity until the Supreme Court's final decision under Section 62 of the IBC. Earlier on August 8, the COC had opposed the plea by former promoters by questioning the maintainability. A bench headed by former top court judge Bela M Trivedi on May 2 ordered liquidation of BPSL while setting aside a resolution plan of JSW Steel Limited for the ailing firm. PTI
India Today
23 minutes ago
- India Today
India's R&D deficit: Just where are the scientists?
(NOTE: This article was originally published in the India Today issue dated August 18, 2025)Nobel laureates and physicists Duncan Haldane and David Gross have just pointed out a huge mismatch: India has the talent, but is not benefitting because there's not enough funds for scientific research. Speaking at the Quantum India Summit in Bengaluru on July 31, Gross, who chairs an advisory board at the International Centre for Theoretical Sciences here, says India's lack of investment in R&D doesn't bode GDP is up, but its contribution to 'investments to the future', which will drive new technologies and industries, is low. In 2009, India's R&D spend was 0.84 per cent of GDP; it fell to 0.64 per cent by 2021 and is estimated to be 0.7 per cent in 2025. This is much less than what the US (3.5 per cent) and China (2.4 per cent) Rs 1 lakh crore Research Development and Innovation (RDI) fund, announced in this year's budget, should help. It will be operationalised this year, with Rs 20,000 crore already allocated. The Anusandhan National Research Foundation, launched last year, also has a fund, but will primarily invest in academic research and research labs. The RDI fund is meant for private sector R&D, with its Deep Tech Fund 1.0 focusing on strategic autonomy in critical sectors like clean energy and advanced materials. Last year, India was ranked 39th in the Global Innovation Index of 133 countries, up one spot from 2023. The number of full-time equivalent (FTE) researchers per million people in India is 255, abysmal when compared to the USA (4,452), China (1,307), Korea (7,980), and far below the global average of 1,198. The trend of fewer FTE researchers and minimal spends points to an underlying crisis in the R&D sector. As one researcher at the summit put it: 'Cutting-edge research is so fast; if we lose the first few years [due to cost-cutting], we are behind our colleagues abroad already.'Subscribe to India Today Magazine- EndsMust Watch
