Shares of Gokaldas Exports leaped 20% on Tuesday morning to hit a new 52-week high of ₹735.35.
What Happened: The meteoric surge comes today as the company late on Monday announced entering into an agreement to acquire the Atraco Group for $55 million (₹440 crore). The small-cap company said that the Dubai-based Group is a leading manufacturer of apparel with a strong market position and customer relationships across the US and Europe.
The Atraco Group’s product range includes shorts, pants, shirts, t-shirts, blouses, and dresses catering across all age groups. “Atraco operates with a network of four manufacturing units in Kenya and one in Ethiopia producing about four crore garments annually,” Gokaldas said in a statement.
See All: Reliance Shares Trade Lower After AGM: Here’s What Global Analysts Want You To Do
Atraco Group's revenue is approximately $107 million (₹856 crore) million with a profit after tax of $7.2
million (57.6 crore) for the calendar year 2022
The company looks to fund the acquisition through debt and internal accruals. The company expects the transaction to be closed by Q3 FY24 (Oct-Dec 23).
Two Goldman Sachs Funds Goldman Sachs Emerging Markets and Goldman Sachs India Equity own 1.19% and 4.66% stakes in the company respectively. Tata Small Cap Fund owns a 2.25% stake. SBI Life Insurance and HSBC Multi Cap Fund also have a holding in the stock.
Price Action: Gokaldas Exports’ share price was locked in 20% upper circuit at ₹735.35 on Tuesday.
Read Next: Why This Akash Bhanshali Backed Railway Stock Crashed 10% Today
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.