Gokaldas peaks on Blackstone hopes

The shares of Gokaldas Exports, the country's largest apparel exporter currently owned by the Hindujas, hit the roof on Thursday after Blackstone moved closer to taking management control of the company. Analysts said this would boost the company's prospects.

ET had on Thursday reported that the global private equity major will appoint its own nominee Gautam Chakravarty as chief executive officer of the company, taking a significant initiative for management control. Trading in the stock was frozen at the upper side of the 20% circuit limit. The stock closed at 114 while a total of 52,259 shares changed hands, compared with the two-week average of 3,431, on the BSE.

Blackstone has invested about $161 million in Gokaldas, and had raised its stake to 68% three years ago. Currently, the Hindujas hold a 20% stake in the company. "Where ever there is a shift of ownership, the thrust on and momentum of operations increases and investors expect some improvement in the company," said Apurv Shah, research head at Prabhudas Lilladher.