Gokaldas Exports Ltd. has signed a definitive agreement to acquire 100 per cent equity in Matrix Design & Industries Pvt. Ltd., for an enterprise value of Rs. 489 crore, it said in an exchange filing.
Out of this Rs. 489 crore, Rs. 247.5 crore is being paid by way of preferential allotment of shares of Gokaldas Exports through a share swap. The board also approved an issue of 2.73 million equity shares of the company at Rs. 901.14 per share to MCPL.
The Matrix Clothing Group produces knitwear for men, women, and kids for well-known companies with significant geographic exposure to North America, Europe, and the UK. With five production facilities—four in Gurgaon, Haryana, and one in Ranchi, Jharkhand—the group is based out of Gurgaon, Haryana.
With its proven track record of success, the management is confident that Matrix will broaden the company’s product range, strengthen its position in the Knits category, attract new clients, improve its geographic reach throughout Europe, and enhance its investment in fabric processing. The company’s growth strategy, according to the management, will provide a strong basis for a prosperous and long-lasting future.
Gokaldas Exports Vice Chairman & Managing Director Sivaramakrishnan Ganapathi said that the acquisition of Matrix is an important step towards the company’s goal of adding production capacity at strategic locations and enhancing value propositions to customers. “It is strategically relevant, possesses a good complementary customer base, operationally strong and above all, a leader in its own sphere,” he said.
Gokaldas Exports recorded a 25 per cent year-over-year (Y-o-Y) fall in profit after tax (PAT) at Rs 30.4 crore for the October–December quarter (Q3FY24). Sequentially, PAT increased by 28 per cent.
At Rs 559.80 crore, revenue increased by 10 per cent sequentially and 6 per cent year over year. This is happening in the context of Indian apparel exports, which have decreased by 12 per cent year over year and have remained stable sequentially. According to management, this better performance shows the company’s resiliency in the face of difficulty.
The management is expecting a positive momentum for in the calendar year 2024 and expects sequential growth to pick up over the next quarters. The board has also approved raising of funds for an aggregate amount of up to Rs 600 crore via preferential allotment or a private placement or qualified institutions placement (QIP).
