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PNN
New Delhi [India], May 5: Gujarat Cotex Ltd (BSE - 514386), a diversified company across textiles, real estate, hospitality and agro commodity trading businesses plans to raise Rs. 42.73 crore from its Rights Issue to funds its expansion plans. The Rights Issue opened for subscription on April 10 and will close on May 08, 2026. The Rights Issue is priced at Rs. 5 per share, offering existing shareholders an opportunity to increase their equity in the company. Share price of company's shares on May 5 is trading at Rs. 12.2 per share. The last date for On-Market Renunciation of REs is today, May 5, 2026. The rights Issue comprises 8,54,64,000 fully paid-up Equity Shares of face value Rs. 5 each, aggregating to Rs. 42.73 crore. Proceeds from the issue will be used to support company's expansion plans and strengthen the company's financial position. The Rights Issue is being offered in the entitlement ratio of 6:1 (6 rights shares for every 1 equity share held). The company proposes to utilize the issue proceeds aggregating to Rs. 42.73 crore towards strategic growth and expansion initiatives. An amount of Rs. 9.60 crore will be deployed for the completion of its upcoming premium hotel project near Sarangpur Hanuman Mandir, comprising 55 rooms and 10 dormitory accommodations, aimed at catering to the rising demand for quality hospitality services in the region. Further, Rs. 2.13 crore will be utilized for the purchase of a new registered office, strengthening the Company's operational infrastructure. A significant portion of Rs. 19.30 crore is earmarked to meet the Company's working capital requirements, supporting business scalability across its diversified segments. The remaining Rs. 10.68 crore will be allocated towards general corporate purposes, enabling overall business growth and operational flexibility. For the nine months of financial year 2026 ended December 2025, company achieved revenue from operations of Rs. 29.86 crore, rise of 54.7% Y-o-Y as compared to the revenue of Rs. 19.30 crore in the corresponding period of FY 2024-25. Net profit also rose to Rs. 82.6 lakh for nine months of FY26 as against net profit of Rs. 45.96 lakh in the 9MFY25, a 79.7% Y-o-Y growth. Founded in the year 1992 with textile manufacturing, Gujarat Cotex Ltd have strategically transitioned in 2016-17 to trading a wide range of grey and dyed polyester fabrics, serving power loom operators and industrial clients. Since 2007-08, company have expanded into real estate through the purchase and sale of plots, and are now foraying into hospitality with an upcoming venture. Company has recently entered agro-commodity trading with a strong focus on packed pulses to to serve institutional buyers, traders, and processing units. Today, company has grown to a diversified enterprise operating across textiles, real estate, hospitality, and agro-commodity trading, driven by a strong commitment to quality, innovation, and sustainability. Company has a mission is to deliver high-quality products and services that meet evolving customer needs, contribute to community development, and uphold our core values of sustainability and innovation. (ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same.)
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