Company expands its global presence through a USD 55 million acquisition of USE-based company, Stock surged 20 per cent today and hit the upper circuit!
Shares of the company have generated a multibagger return of 1180 per cent in the last three years.
Gokaldas Exports Limited (GEL) and its wholly owned subsidiaries have recently engaged in an agreement to purchase Atraco Group (Atraco), a prominent apparel manufacturer with a robust market presence and established customer relationships in the U.S. and Europe. Atraco's product lineup encompasses a wide range including shorts, pants, shirts, t-shirts, blouses, and dresses, catering to various age groups.
Atraco, founded in 1986, boasts a legacy of more than thirty years as a regional leader in the apparel sector. While headquartered in Dubai, UAE, housing its marketing, sourcing, product development, and corporate functions, Atraco operates via a network of manufacturing units—four in Kenya and one in Ethiopia—producing around 40 million garments annually.
In the year 2022, Atraco Group reported revenue of approximately USD 107 million, with a post-tax profit of USD 7.2 million. The company employs over 13,000 workers across multiple locations in Kenya, Ethiopia, and the UAE.
The equity value of this acquisition amounts to USD 55 million and will be financed through a combination of debt and internal funds.
The transaction encompasses the acquisition of shares and assets, contingent upon standard regulatory approvals. Anticipated to conclude by Q3 FY24 (October-December 2023), the transaction is poised to enhance GEL's market presence and strategic positioning in the industry.
Gokaldas Exports Limited (GEL) is a prominent manufacturer and exporter of ready-made garments in India. The company is involved in designing, manufacturing, and selling a diverse range of ready-made garments suitable for men, women, and children, catering to all seasons.
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The shares of the company surged 20 per cent today and concluded the day at Rs 736.30 each on the BSE.
Disclaimer: This article is for informational purposes only and not investment advice.