Shares of Gokaldas Exports Ltd rallied 5% on 20 June after the company announced its plans to invest in fabric maker BRFL Textiles Pvt Ltd by subscribing through optionally convertible debentures (OCDs).

In its regulatory filing, the company said that a potential merger or acquisition will also be considered by them on 30 June 2025, which is subject to certain criteria.

In the first tranche, the company plans to subscribe to OCDs valued at Rs 50 crore, whereas the remaining OCDs worth Rs 300 crore will be subscribed to in multiple tranches, subject to funding requirements. 

These funds will be utilised to meet working capital requirements, with a smaller portion going toward capital expenditure requirements.

Investing in BRFL Textiles will help the company become self-reliant in meeting its raw material needs for manufacturing. 

BRFL Textiles boasts top-notch infrastructure, including expertise in linen manufacturing and world-class machinery. BRFL specialise in yard-dyed and prints fabrics that align perfectly with the company’s internal requirements. 

The company said, “At this point, investment in a fabric processing mill would play an important strategic step for the company.”

The company added, “Further, subject to the fulfilment of certain conditions and receipt of applicable regulatory, statutory, or other required approvals/consents, a possible merger or acquisition will be explored by 30th June 2025.”

At 12:17 pm, the shares of Gokaldas Exports were trading 3.64% higher at Rs 862.15 on NSE.