Gujarat Cotex, a diversified textiles, real estate, hospitality and agro commodity trading company, has announced plans to raise ₹43 crore through a rights issue to fund its expansion plans. According to reports from The Hindu BusinessLine, the rights issue will close for subscription on May 8, with the last date for on-market renunciation of rights entitlements set for May 5. The issue comprises 8,54,64,000 fully paid-up equity shares of face value ₹5 each, offered in an entitlement ratio of 6:1 (6 rights shares for every 1 equity share held).
Founded in 1992 in the textile manufacturing segment, Gujarat Cotex has undergone significant diversification since its inception. As reported by The Hindu BusinessLine, the company transitioned to trading a wide range of grey and dyed polyester fabrics in 2016-17, serving power loom operators and industrial clients. Since 2007-08, the company has expanded into real estate through the purchase and sale of plots, and is now foraying into hospitality with an upcoming venture. The company recently entered agro-commodity trading with a strong focus on packed pulses to serve institutional buyers, traders, and processing units.
According to The Hindu BusinessLine, the proceeds from the rights issue will be utilized to support the company's expansion plans and strengthen its financial position. The company's diversified business model spans multiple sectors including textiles, real estate, hospitality, and agro commodity trading, providing multiple growth avenues for the expanded capital base.
