Bengaluru-based garments exporter Gokaldas Exports Ltd (GEX) has announced that its board has approved the amalgamation of BRFL Textiles Pvt Ltd (BTPL) with the company, aiming to create a vertically integrated operation with enhanced supply chain capabilities.
The draft scheme, approved on August 9, is subject to shareholder and regulatory clearances. It offers BTPL shareholders two settlement options — pure equity or a cash-plus-equity combination — in GEX. Under the equity option, shareholders will receive 40 fully paid GEX shares of ₹5 each for every 3,581 BTPL shares of ₹10. The alternative offers 30 GEX shares plus ₹8,952.50 in cash for the same holding.
GEX, which had already invested in BTPL via optionally convertible debentures in June 2024 and recently raised its stake to 19%, estimates the total acquisition cost at ₹552 crore.
BTPL, a major fabrics manufacturer, reported total assets of ₹877.13 crore, net worth of ₹147.57 crore, and FY25 turnover of ₹371.42 crore. GEX said the merger will drive operational and financial efficiencies, strengthening its product range and market position.