· Rights Issue has opened with the issuance of up to 15,11,41,500 Equity shares at Rs. 3 per equity share totalling Rs 45.34 crore. The issue will close on 15th March 2024
· Shareholders will be entitled to one Right equity share for each fully paid-up equity share held as of the record date of February 23, 2024.
· Financial results for Q3, 2023 were announced recently where the company’s profit after tax increased 4x from Rs. 47.61 lakhs to 163.83 lakhs in the previous comparative quarter
· Proceeds will be partly utilised for fuelling forward integration via acquisitions which will translate to growth of over 30% in consolidated revenue to Rs. 520 crores in the next 3 years
The Rights Issue by Globe Textiles (India) Limited (NSE: GLOBE), a globally recognised garment manufacturer, supplier, and trader for Rs. 45.34 crs is open for subscription and will close on 15th March 2024. This strategic initiative underscores the company’s commitment to enhancing shareholder value and fortifying its financial position for sustainable growth.
Mr. Bhavin Parikh, Chief Executive Officer at Globe Textiles (India) Limited, elaborated on the strategic allocation of proceeds from the Rights Issue: “This is an important milestone in the growth of the company. The funds will fuel our forward integration plans via acquisition translating to enhanced capabilities and driving growth. It will enhance our asset base, margins and top line as well as introduce innovative sustainable fashion garments and practices which are sought after by customers from India, Europe and the US. We are confident that this development will enhance the estimated top line by 120 crores to about 520 crores while improving margin by 2027- 28.” The acquisition will enhance Globe Textile’s capabilities with state-of-the-art facilities including automated washing tumblers and dryers, advancing processing and sample development. This addition will increase garment processing capacity to 20,000 units per day and 6 Lakh units per month, significantly boosting production. Moreover, it will lead to certification as a Zero Liquid Discharge Facility by ATIRA showcasing the company’s dedication to environmental sustainability.
Globe Textiles recorded revenue from operations of INR 9,282.96 lakhs for the quarter ended December 31, 2023, showcasing its consistent revenue stream despite challenges. For the nine months ended December 31, 2023, the company reported revenue of INR 32,761.63 lakhs, underlining its stability in the market.
