Business

Gokaldas Exports Raises Rs 300 Crore Through QIP

Gokaldas Exports plans to use the funds for repayment or prepayment of all or a portion of its borrowings, financing working capital requirements, inorganic growth opportunities. Apparel maker and exporter Gokaldas Exports Ltd has raised Rs 300 crore from institutional investors through a qualified institutional placement offering (QIP). The company had launched the QIP offering on 4 October at a floor price of Rs 194.58 a piece. “The company has successfully managed to raise Rs 300 crore through the QIP from marquee institutional investors including funds managed by Goldman Sachs, HSBC, Nippon and others. The share sale saw a strong demand of two times and shares were sold at the floor price, as against the usual QIP practice of offering a discount on the floor price," according to sources. The company plans to use the funds for repayment or prepayment of all or a portion of its borrowings, financing working capital requirements, inorganic growth opportunities and for making strategic acquisitions, entering into a new business line, the company said in its offer document filed with stock exchanges. Investment bank JM Financial advised the company on the fundraise. Gokaldas is targeting to double its revenue by FY25. The company is investing Rs 120 crore over the next two years to expand capacities. The company has started a new unit in Tumkur, Karnataka and is in the process of setting up a greenfield capacity at Bhopal, Madhya Pradesh. On achievement of full ramp up and productivity, the unit will contribute about 4.5% of the current capacity. The company is also evaluating expansion in low-cost apparel manufacturing regions such as Bangladesh, where it will start operation by contracting out orders before setting up its own units.