Gokaldas Exports raises Rs 70 crore, closes QIP

MUMBAI: Gokaldas Exports, a Mumbai-based apparel manufacturer, has successfully closed its share sale, with institutional investors such as HSF Mauritius and L&T Mutual Fund owning stock in the company.

It has raised Rs 70 crore via qualified institutional placement, a mechanism through which a company issues shares to select investors.

HSF Mauritius is a fund managed by Samir Arora, a high net-worth individual, who actively invests in domestic equities.


“The company plans to use a portion of the fund raised through QIP to set up new factories, mainly in low-cost locations within India,” said Siva Ganapathi, managing director at Gokaldas. “We expect to almost double the capacity in next three to four years. A part of the fund would be used as working capital.”

The company’s shares fell 2.5% to close at Rs 101.50 on Thursday. Bulge-bracket private equity player Blackstone had earlier invested in the company only to exit at a profit last year when Clear Wealth Consultancy, an institutional investor, bought its entire 40% stake.

The company is in the process of strengthening the management team and upgrading technology and infrastructure of the company, it said.