Latest news with #Gokaldas
Economic Times
2 days ago
- Business
- Economic Times
Gokaldas Exports board clears merger proposal with BRFL Textiles
Synopsis Gokaldas Exports Ltd. has approved a merger with BRFL Textiles to create a vertically integrated apparel and textile business, offering BRFL shareholders stock or a combination of stock and cash. This move aims to enhance fabric capabilities, improve margins, and ensure consistent supply amidst challenges like increased US tariffs. iStock A year after making a strategic investment, 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. The development comes at a time when Trump's 50% tariff shocker on Indian garments exports to the US has impacted the industry significantly. 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 has been valued at Rs 552 crores for 100% of its paid up equity capital. '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 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 requirementsBRFL 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 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 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.
Time of India
2 days ago
- Business
- Time of India
Gokaldas Exports board clears merger proposal with BRFL Textiles
A year after making a strategic investment, 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.
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Business Standard
4 days ago
- Business
- Business Standard
Tariff Impact: Emkay says buy the dip, stick to discretionary, industrials
Emkay on Trump tariffs, India impact: Domestic brokerage firm Emkay has advised investors to look through the near-term volatility triggered by the US imposing an effective 50 per cent tariff on Indian imports. While acknowledging that the situation poses considerably elevated risks, the brokerage maintained its positive stance on India's medium-term prospects and recommends investors buy a substantial dip (of more than 5 per cent) if markets correct meaningfully. The US has imposed a 25 per cent penalty via executive order, which takes the total tariff burden to 50 per cent on select Indian goods. Emkay said this move would decimate Indian exporters to the US, with tariffs well above that for Asian peers and eliminating any advantage versus China. However, the brokerage noted that this may not be a done deal as there is a '21-day off-ramp' before the effective date of August 27, 2025, which leaves the door open for a negotiated settlement. One potential route to a compromise lies in the 'reduction rather than complete cessation of contentious oil imports from Russia.' Tariffs impact on Indian markets On the potential impact to India, Emkay reiterated that the direct impact on listed market earnings is limited. However, it warns of second-order hits on employment-heavy sectors like textiles and jewellery as exports come to a near-complete halt. The government is expected to step in with fiscal support and measures to protect banks from potential non-performing loans (NPLs). Sector-view On sector implications, Emkay identified the most-impacted areas as textiles (Gokaldas/Kitex), chemicals (Camlin, Aarti and Atul), and auto ancillaries (Bharat Forge/Suprajit/Sona BLW), with direct export exposure to the US. Additionally, if India cuts Russian crude imports, Reliance and the oil marketing companies (OMCs) are vulnerable, and crude prices could spike. On a relatively safer footing are pharma and EMS, which appear to be exempt for now, although the brokerage flagged that a possible announcement by Apple later today could hurt EMS sentiment. Given the complexity of the evolving situation, Emkay cautioned that 'trying to trade this uncertainty is highly risky,' with too many variables at play – renegotiated tariffs, sectoral carve-outs and carve-ins, and India slowing Russian oil imports. Thus, the brokerage recommends that investors minimise exposure to export-oriented and globally exposed sectors and instead buy the dip if the market correction goes above 5 per cent from here, as valuations would then be comfortable at well below the long-term average (LTA). Despite the turmoil, Emkay's sector stance remains unchanged. Consumer Discretionary and Industrials are the two over-weight (OW) sectors, while the brokerage stays under-weight (UW) on Financials, Technology, and Staples. India's high dependence on domestic consumption and the expected H2FY26 consumption-led recovery form the basis of the brokerages' continued optimism. In a tough environment where 'investors (are) driving without headlights,' Emkay suggests investors' stay invested, avoid panic, and be ready to act if valuations correct meaningfully.
Economic Times
4 days ago
- Business
- Economic Times
Trump's 50% tariffs on India: Textiles, jewellery, shrimp, other export-exposed stocks slide up to 6%
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Here's a sectoral breakdown of Trump's 50% tariff impact from a stock market perspective: Auto stocks Textiles Tired of too many ads? Remove Ads Jewellery and Gems Shrimp stocks Capital Goods Chemical stocks Oil refiners Solar stocks From 'Howdy Modi' to tariff walls Indian export-facing stocks took a sharp hit on Thursday as a wave of punitive 50% U.S. tariffs announced by U.S. President Donald Trump triggered a sell-off across key sectors such as textiles, jewellery , shrimp, auto components and chemicals. While the broader Sensex fell a relatively muted 300 points, analysts warned that the market is entering a deadly waiting game, with fresh investment flows likely to stall until either a U.S.-India trade deal materialises or the selloff deepens enough to attract bargain steep tariff escalation, building on a previously announced 25% levy that kicks in from Thursday, targets Indian goods with significant exposure to U.S. demand. Though only around 20% of India's goods exports head to the U.S., several niche categories, ranging from ready-made garments to precision auto parts and seafood, are heavily reliant on American buyers."The escalation from 25% to 50% tariffs will create sector-specific pressures rather than broad market disruption for Indian equities. The Nifty 50's limited 9% direct exposure to the U.S., primarily concentrated in IT services, which remain exempt from goods-based duties, provides substantial insulation," said Nitant Darekar, Research Analyst at stocks in gems and jewellery, apparel, textiles, and chemicals face immediate headwinds as these sectors represent the most vulnerable $8 billion export segment, Darekar said.'The most-impacted sectors are textiles (Gokaldas/Kitex), Chemicals (Camlin, Aarti and Atul), and Auto Ancs (BHFC/Suprajit/Sona BLW), with direct export exposure to the US,' said Seshadri Sen of Emkay Global.'This is a tough period to navigate for investors,' Sen warned. 'The terms of the final trade deal could still be considerably different, though a worst-case, highly damaging scenario has presented itself.'Auto component makers with high U.S. revenue share were among the hardest hit. Bharat Forge, with 40–45% of revenue from the U.S., dropped over 3%, while Sona BLW Precision, which earns 30–35% from the U.S., fell nearly 2%.Steel Strips Wheels, which sends 63% of its export volumes to the U.S., fell 2.2%, while Garware Hi Tech Films, deriving 45% of its revenue from the U.S., dropped 3.5%. Tata Motors, largely insulated due to existing US-UK and US-EU tariff frameworks on JLR exports, still shed 2.4%.Indian textile stocks were among the worst performers, reeling from the tariff-induced erosion in competitiveness. Shares of Gokaldas Exports and Pearl Global fell 3.9% and 3.2% respectively. Kitex Garments, with 70% of sales to the U.S., plunged 5%. KPR Mill and Vardhman Textiles slid 6.2% and 2.8%, respectively.'If effective, the steep 50% tariff would be similar to a trade embargo,' Nomura said. 'Lower value addition and thinner margins across industries like textiles and gem & jewellery could jeopardise operations.'The pain is accentuated by favourable deals signed by competitors. Pakistan's rate has been cut to 19%, Bangladesh's to 20%, while Vietnam has also reduced its rate to 20%, widening the gap for Indian and jewellery exporters were not spared. Goldiam International, which earns 90% of its revenue from the U.S., fell 4.7%. Granite exporter Pokarna dropped 4.5%.Seafood exporters bore the brunt of the selloff after the U.S. hiked tariffs to 50%. Avanti Feeds fell 5.3% to Rs 631.80, Apex Frozen Foods slid 4% to Rs 218.80, and Waterbase Ltd dropped nearly 2% to Rs impact on capital goods stocks was mixed. Cummins India, which derives 5–15% revenue from sales to its U.S. parent, slipped about 1%. Thermax fell 2%, while Jefferies had previously noted that 'China tariffs higher, so might have limited impact.' KEI Industries, with less than 5% U.S. exposure, was took a hit, especially companies involved in refrigerator gas exports. Navin Fluorine International, with 24% U.S. revenue exposure, fell 1.7%, while PI Industries and SRF Limited were down 1.6% and 2.5%, noted earlier that 'agrochemicals are broadly outside the tariff ambit,' providing some cushion for the sector. However, Navin Fluorine and SRF remain vulnerable due to their U.S.-facing product stocks bore the brunt of a parallel tariff penalty tied to India's ongoing purchases of Russian crude. Reliance Industries fell 1.1%, while Bharat Petroleum and Hindustan Petroleum each dropped around 1.5%. Indian Oil Corporation lost nearly 1%.'Reliance Industries, BPCL, HPCL and IOCL may need to diversify sourcing beyond Russia,' Jefferies had previously said, warning that narrowing discounts on non-Russian barrels could erode refinery firms with large U.S. order books also tumbled. Waaree Energies, with 59% of its 25GW overseas order book headed to the U.S., dropped 3.6%. Premier Energies lost 1.8%.The tariff move underscores a marked deterioration in the relationship between Washington and New Delhi since the much-publicised February meeting between Trump and Prime Minister Narendra Modi. In recent weeks, Trump has publicly referred to India's economy as 'dead,' branded its trade barriers 'obnoxious,' and accused it of 'profiting' from cheap Russian oil while remaining silent on Russia's war in Ukraine, now in its fourth Ministry of External Affairs called the move 'extremely unfortunate,' and pointed out that 'many other countries are also importing Russian oil in their national economic interest.'Trade between the world's largest and fifth-largest economies is valued at over $190 billion, according to Reuters, and the latest escalation throws a spotlight on the frictions that could derail a steadily growing bilateral economic relationship.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Economic Times
4 days ago
- Business
- Economic Times
Explained: What Trump's 50% tariff mean for stock market investors and should Nifty bulls worry
Indian stock markets face uncertainty due to potential US tariffs. Investors are hesitant, awaiting trade deal clarity. Export-oriented sectors like textiles and auto ancillaries are most vulnerable. Focus shifts to domestic consumption-based businesses. Analysts suggest buying opportunities may arise from market corrections. Long-term investors are advised to remain steady. The rupee's decline offers some respite for exporters. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads What should investors do? Tired of too many ads? Remove Ads The dip-buying opportunity Indian stock markets are trapped in a deadly waiting game as Trump 's crushing 50% tariff threat may slam the brakes on fresh investment flows, with many investors unwilling to commit fresh capital until a US-India trade deal materializes or a carnage hits Dalal Street, making it attractive enough to buy the Thursday's Sensex's muted 300-point drop suggests markets had partially priced in steeper tariffs, analysts warn the real carnage in export-facing stocks is just beginning, and the paralysis could persist for punitive tariffs on Russian crude imports have pushed total US duties to levels Nomura calls "similar to a trade embargo." The 50% rate, 20 points higher than China and 21 above Pakistan, threatens a bunch of export sectors worth billions of dollars."This is a tough period to navigate for investors," warns Seshadri Sen from Emkay Global . "The terms of the final trade deal could still be considerably different, though a worst-case, highly damaging scenario has presented itself."The carnage is already being mapped out sector by sector. Sen identifies the most vulnerable: "The most-impacted sectors are textiles (Gokaldas/Kitex), Chemicals (Camlin, Aarti and Atul), and Auto Ancs (BHFC/Suprajit/Sona BLW), with direct export exposure to the US."Nomura's analysis reveals the scale of destruction awaiting: "If effective, the steep 50% tariff would be similar to a trade embargo, and will lead to a sudden stop in affected export products. The lower value addition and thinner margins across a number of industries (textiles, gem & jewellery) could jeopardise operations, especially of smaller firms that will struggle to compete."Also Read | Trump doubles tariff on India to 50% over Russian oil purchase The US accounts for 18% of India's total exports and 2.2% of GDP, with key sectors seeing 30-40% of their global exports heading to America. For textiles, gems & jewelry, and leather companies operating on thin margins, the tariff wall could prove brokerage firm SBI Securities has warned of collateral damage to Indian companies operating US brands. "Stay away from US brands focussed domestic franchisees, as clamour to boycott US products and follow swadeshi model may grow," the brokerage cautions, naming Jubilant Foodworks (Dominos, Dunkin Donut), Westlife (McDonald's), Devyani International (Burger King), Varun Beverages (Pepsi), and Sapphire Foods (KFC, Pizza Hut) as vulnerable to "temporary enhanced selling pressure."Mahesh Patil of Aditya Birla Sun Life AMC draws parallels with Brazil's experience: 'We are now at par with Brazil, which provides a blueprint, it saw a 6-7% fall from the peak before recovering in local terms.'The rupee's decline, while painful, offers a counterintuitive benefit. 'The immediate casualty is the INR, which will take the brunt—this will provide some respite for exporters. Counterintuitively, a fall in the INR (once it stabilises) is positive for local earnings, and hence equities benefit with a lag,' Patil export sectors in the crosshairs, the investment playbook is shifting toward domestic consumption. SBI Securities recommends focusing on 'domestic-focused businesses like Cement, Hotels, Telecom, New Age Businesses, EMS players, Auto/Auto Ancillaries, Hospitals, Defence/Railways, and Alcoholic Beverages.'Ajay Sen of Emkay Global maintains conviction in India's structural resilience: 'We see the broader economy staying resilient and remain convinced of a 2HFY26 consumption-led recovery. We would look through any near-term volatility caused by this and buy a substantial dip (of more than 5%).'Several analysts are positioning the crisis as a potential goldmine for patient investors. Sen's four-point survival strategy includes: 'Buy the dip if the market correction exceeds 5% from here. Valuations would then be comfortably below the long-term average, and the direct impact on the listed universe's earnings is negligible.'Dr. V.K. Vijayakumar of Geojit Financial Services strikes a balanced tone: 'The market is unlikely to panic, but weakness will continue in the near term. Since uncertainty is high, investors should adopt a cautious approach.'Your investment strategy depends significantly on your investment horizon and risk appetite. Santosh Meena of Swastika Investmart advises long-term investors to stay the course: 'This development is part of ongoing global trade tensions and shouldn't distract from India's long-term growth potential. But short-term traders should exercise caution.'For long-term investors, the consensus remains surprisingly optimistic. India's domestic consumption story stays intact, with IT, pharmaceuticals, and electronics notably exempt from current tariff Patil concludes: 'Any knee-jerk correction in the market would be a good opportunity to increase allocation to equities, as the macroeconomic outlook and long-term fundamentals of India are fairly strong.'The 21-day countdown to tariff implementation has begun. Markets may be paralyzed now, but for those willing to look beyond the immediate chaos, the foundations for the next rally may already be forming.
