Globe Textiles (India) Limited, a renowned manufacturer, supplier, and trader of garments on a global scale, has recently received in-principle approval from the NSE stock exchange for a proposed right issue of up to 15,11,41,500 equity shares.
The company, in a press release issued on Wednesday, emphasized that this strategic move is a testament to its dedication towards enhancing shareholder value and fortifying its financial position to facilitate sustainable growth.
The rights issue is designed as an invitation to existing shareholders, offering them the opportunity to purchase additional company shares at a discounted price within a specified period.
Bhavin Parikh, the Chief Executive Officer of Globe Textiles (India) Limited, elaborated on the purpose of raising funds through this initiative. “It will bolster our asset base, margins, and revenue, while also introducing innovative and sustainable fashion garments and practices that are in demand among customers in India, Europe, and the US. We are confident that this development will boost the estimated top line to about 520 crores by 2027-28, along with an improvement in margin,” Parikh commented.
In the financial results for the quarter ending on December 31, 2023, Globe Textiles reported revenue from operations amounting to Rs 9282.96 lakhs. The company’s revenue for the nine-month period ending December 31, 2023, stood at Rs 32,761.63 lakhs.
During the same quarter, Globe Textiles achieved a profit before tax of Rs 198.83 lakhs, signaling positive growth compared to previous periods. Additionally, the company reported a profit after tax of Rs 163.83 lakhs for the quarter and Rs 444.71 lakhs for the nine-month period ending on December 31, 2023.
According to the release, Globe Textiles observed a significant 4x increase in profit after tax, rising from Rs 47.61 lakhs to Rs 163.83 lakhs during the previous comparative quarter.
This significant development underscores Globe Textiles’ steadfast commitment to fortifying its financial standing and actively pursuing sustainable growth opportunities within the garment industry.
