· Rights Issue will open on 6th March 2024 with issuance of up to 15,11,41,500 Equity shares at Rs. 3 per equity share totalling up to Rs 49 crores.
· 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 next 3 years
21st Feb 2024: Globe Textiles (India) Limited (NSE: GLOBE), a globally recognized garment manufacturer, supplier, and trader, has received in-principle approval from NSE for proposed right issue of upto 15,11,41,500 Equity Shares. 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 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 topline as well as introduce innovative sustainable fashion garments and practices which are sought after by customers from India, Europe and 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.
The company recorded a profit before tax of INR 198.83 lakhs in the quarter, which is a good sign of growth compared to previous periods. Additionally, Globe Textiles reported a profit after tax of INR 163.83 lakhs for the quarter and INR 444.71 lakhs for the nine months ending on December 31, 2023, indicating its resilience in maintaining profitability. The company’s profit after tax increased 4x from Rs. 47.61 lakhs to 163.83 lakhs in the previous comparative quarter.
