Shares of Gokaldas Exports zoomed 9 per cent in early trade on Wednesday and hit its 52-week high a day after the company said it has entered into an agreement through its wholly-owned subsidiaries to acquire UAE-based Atraco Group.
The shares of the company rallied 8.83 per cent to Rs 800.25 apiece on the NSE.
The stock witnessed a similar movement on the BSE, where it bounced 8.71 per cent to Rs 800.40 per share.
Also, the scrip touched its 52-week high of Rs 817.70 and 817.20 on NSE and BSE, respectively.
Meanwhile, the 30-share BSE Sensex was trading 351.54 points or 0.54 per cent higher at 65,427.36 points in the morning session.
On Tuesday, Readymade garment manufacturer and exporter Gokaldas Exports Ltd (GEL) said it has entered into an agreement through its wholly-owned subsidiaries to acquire Atraco Group for USD 55 million.
The equity value of the transaction is USD 55 million (around Rs 455 crore) and the same will be funded by a mix of debt and internal accruals, the company said.
The transaction will consist of the acquisition of shares and assets and will be subject to customary regulatory approvals. It is expected to be completed by the third quarter of FY24 (October-December 2023), it added.
Currently, GEL exports to more than 50 countries and its customers include prominent international brands in North America, South America, Europe, Africa, Oceania and Asian countries.
The company has over 20 manufacturing facilities, complemented by five integrated ancillary units.