Trending Stock: This stock jumped 20% as soon as it got a big deal in Dubai, do you have it?

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New Delhi: There was a bullish trend in the stock market today. Both Sensex and Nifty are seeing a boom. The Sensex gained 0.08% and the Nifty gained 0.12%. Amidst this growth, the shares of Gokaldas Exports Ltd. rose tremendously. The company’s stock climbed over 20% to hit an all-time high of Rs 736.60. Along with this, its volume also increased by 7.36 times. The main reason for this rally in the company’s shares is the announcement of acquisition of Dubai-based Atraco Group. Gokaldas Exports has entered into an agreement to acquire Atraco Group through its wholly owned subsidiaries. Atraco is a leading apparel manufacturing company. It has a strong presence in the US and Europe.

The estimated value of the deal is $55 million, which will be financed through a combination of debt and internal accruals. The deal has been done in shares and assets and is yet to get regulatory approval. Gokaldas Exports said in a regulatory filing that the transaction is expected to be completed in the third quarter of FY2024. Ataraco Group is expert in a variety of products. These include shorts, pants, shirts, t-shirts, blouses and dresses for different age groups. Financially, Ataraco Group projects a revenue of approximately $107 million in the year 2022 and a profit of $7.2 million. The company has over 13,000 employees across multiple locations in Kenya, Ethiopia and the UAE.

Sivaramakrishnan Ganapathy, Vice Chairman and Managing Director, Gokaldas Exports Ltd. said, “We are very excited to welcome Ataraco’s amazing leadership team, its employees and global customers. We believe in continuously increasing our production capacity at strategic locations to provide better products to our customers. The acquisition of Atraco is an important step in this direction as it is strategically important for us and has a strong customer base. The company is operationally strong and above all, it is an expert in its field.

He said that this acquisition will give us access to low-cost duty-free locations for manufacturing. Together we can offer a wider range of options for our global customers. We look forward to welcoming over 13,000 new members to the GEL family. Gokaldas Exports Limited is engaged in designing, manufacturing and marketing a wide range of apparel for men, women and children. The company caters to the diverse clothing needs of many leading international fashion brands and retailers. This stock has acquired the status of multibagger. It has given a return of more than 107% in the last one year. Moreover, the stock has gained more than 1176% in last three years. Keep a close eye on this trending stock.

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