Globe Textiles gets NSE nod for rights issue of up to Rs 49 crore to fuel growth

New Delhi [India], February 21 : Globe Textiles (India) Limited, a globally recognised garment manufacturer, supplier, and trader has received in-principle approval from the stock exchange NSE for a proposed right issue of up to 15,11,41,500 equity shares.

The company said in a press release on Wednesday that this strategic initiative underscored the company's commitment to enhancing shareholder value and fortifying its financial position for sustainable growth.

The rights issue is an invitation to the existing shareholders to purchase additional shares of the company within a specific period at a discounted price.

Bhavin Parikh, Chief Executive Officer at Globe Textiles (India) Limited, said the funds will fuel its forward integration plans via acquisition.

"It will enhance our asset base, margins and topline as well as introduce innovative sustainable fashion garments and practices that 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," Parikh added.

Globe Textiles recorded revenue from operations of Rs 9282.96 lakhs for the quarter ended December 31, 2023. For the nine months ended December 31, 2023, the company reported revenue of Rs 32,761.63 lakhs.

The company recorded a profit before tax of Rs 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 Rs 163.83 lakhs for the quarter and Rs 444.71 lakhs for the nine months ending on December 31, 2023.

As per the release, the company's profit after tax increased 4x from Rs 47.61 lakhs to Rs 163.83 lakhs in the previous comparative quarter.

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