Gokaldas Exports share price jumps 20% to hit 52-week high on Atraco acquisition

Gokaldas Exports share price were locked at 20% upper circuit at a 52-week high on Tuesday after the company announced the acquisition of Dubai-headquartered Atraco Group (Atraco). Gokaldas Exports shares jumped as much as 20.00% to a 52-week high of ₹736.30 per share on the BSE. 

Gokaldas Exports through its wholly owned subsidiaries has entered into an agreement to acquire Atraco Group (Atraco), a leading manufacturer of apparel with a strong market position across US and Europe. 

The equity value of the transaction is $55 million and the same will be funded by a mix of debt and internal accruals. The transaction will comprise of acquisition of shares and assets and will be subject to customary regulatory approvals and is expected to be closed by Q3 FY24, Gokaldas Exports said in a regulatory filing.

Atrac’s product range includes shorts, pants, shirts, t-shirts, blouses and dresses catering across age groups.  

Atraco Group’s revenue is approximately $107 million with a profit after tax of $7.2 million for the calendar year 2022. It has more than 13,000+ workers spread over multiple locations in Kenya, Ethiopia and UAE. 

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“The acquisition of Atraco is an important step in this direction as it is strategically relevant, possesses a good complementary customer base, operationally strong, and above all, a leader in its own sphere. With this acquisition, we will gain access to low-cost dutyfree locations for manufacturing. Together, we can deliver a wider choice and value proposition to our global customers,” said Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports.

Headquartered in Dubai, UAE, where it has its marketing, sourcing, product development and corporate functions, Atraco operates with a network of four manufacturing units in Kenya and one in Ethiopia producing about 40 million garments annually, the company said.

Gokaldas Exports share price has rallied more than 88% this year so far, while the stock has jumped over 95% in the last one year.

At 9:45 am, Gokaldas Exports share price was locked at 20% upper circuit limit at ₹736.30 apiece on the BSE. 

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