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Gokaldas Exports board approves BRFL Textiles merger

Agency: PTI Last Updated: Mumbai, Aug 9 (PTI) Bengaluru-based garments exporter Gokaldas Exports (GEX) on Saturday said its board has approved the amalgamation of BRFL Textiles Pvt Ltd (BTPL) with the company. The BTPL amalgamation scheme approved by the board at its meeting on August 9 brings in a significant manufacturer of a wide range of fabrics that can bolster the supply chain for Gokaldas Exports range of products within the company's fold, the company said. The move, GEX said, will create a vertically integrated business with operational and financial efficiencies. The draft Scheme of Amalgamation of BTPL Ltd with the company and their respective shareholders will be subjected to all necessary regulatory and shareholder approvals, the company stated. The company said it had already made strategic investments in BTPL in June last year through optionally convertible debentures. Earlier this week, the company's board approved increasing the shareholding in BTPL to 19 per cent, it said. BTPL has total assets of Rs 877.13 crore with a net worth Rs 147.57 crore and clocked a turnover of Rs 371.42 crore for FY25. The draft scheme offers two alternatives of either pure equity or cash plus equity in GEX to the shareholders of BTPL, and every shareholder of BTPL will be able to choose from both options, it said. On final approval of the draft scheme of amalgamation, the BTPL shareholders at their option will receive 40 fully paid equity shares of Rs 5 each of GEX for every 3,581 equity shares of Rs 10 held in BTPL or alternatively receive 30 fully paid equity shares of Rs 5 each of GEX and cash of Rs 8,952.50 for every 3,581 shares of Rs 10 held in BTPL, the company said. With these options and including 19 per cent equity already acquired by GEX, the total acquisition cost of shares of BTPL will be Rs 552 crore, Gokaldas Exports added. PTI IAS TRB view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.