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Globe Textiles’ Rights Issue has seen strong interest, with a 37.04% subscription recorded by Day 3. The company’s Rights Entitlement (RE) recorded a trading volume of 1.16 crore shares between January 24 and January 28, 2025.
Key Details:
- Closing Price: ₹3.84 (as of January 28, 2025)
- Rights Issue Price: ₹3 per share
- Entitlement Ratio: 1 share for every 2 shares held
- Issue Opening Date: January 24, 2025
- Issue Closing Date: February 6, 2025
- Renunciation Period: January 24 – January 31, 2025
- Record Date: January 17, 2025
- Issue Size: ₹4,504 lakhs
Investment Opportunity:
Investors can subscribe to the Rights Issue at ₹3 per share, offering a cost-effective entry into a growing company. With the market price at ₹3.84, this presents a potential value proposition for shareholders and new investors.
Company’s Growth Outlook:
Globe Textiles has positioned itself as a resilient player in the textile industry, continuously adapting to market trends. The company plans to utilize the ₹4,504 lakhs raised from the Rights Issue for expansion and working capital needs, reinforcing its commitment to growth and innovation.
Financial Performance:
- H1 FY2024-25 Net Profit: ₹652 lakhs (exceeding ₹575 lakhs for the entire FY2023-24)
- Q2 FY2024-25 Net Profit: ₹380.76 lakhs (102.20% growth compared to ₹188.31 lakhs in Q2 FY2023-24)
Strategic Developments:
Globe Textiles has strengthened its market presence through the acquisition of a 70% stake in Globe Denwash, a leader in sustainable denim washing and finishing. This move enhances the company’s international footprint in markets such as the UK, US, and Europe, where sustainability is a priority. Globe Denwash’s advanced processing techniques, including energy-efficient methods and a Zero Liquid Discharge system, align with global sustainability standards.
Chairman’s Statement: Bhavik Parikh, Chairman and Managing Director of Globe Textiles, stated: “We are focused on infrastructure, R&D, product innovation, and market expansion to drive growth and profitability. The Rights Issue allows investors to increase their stake and be part of our journey, reinforcing our commitment to long-term value creation.”
Globe Textiles continues to move forward with strategic investments and sustainability-focused initiatives, solidifying its position in the global textile industry.
