Ahmedabad (Gujarat) [India], January 27: The Rs. 4504 lakh Rights Issue of Globe Textiles (India) Ltd (NSE-GLOBE), engaged in the manufacturing of garments, cotton printed fabrics, home textiles and fancy fabrics, was subscribed 14.69% on the first day.

The Rights Issue opened for subscription on January 24 and will close on February 6. The Rights Issue is favorable priced at Rs. 3 per share as compared to the share’s closing price of Rs. 3.78 on 24 January.

Investors not owning the shares of Globe Textiles can also participate in the Rights Issue by buying Globe Textiles Rights Entitlements (NSE Symbol: GLOBE-RE1). On Friday, 67.85 lakh Rights Entitlement of Globe-RE1 were traded on the exchange. The Globe-RE1 opened at Rs. 0.61, touched a high of Rs. 0.72, a low of Rs. 0.55, and closed at Rs. 0.58. The last date for on-market renunciation of Rights Entitlements is January 31.

Bhavik Parikh, Chairman and Managing Director of Globe Textiles India (Limited), said, “The day 1 subscription of almost 15% on the very first day of the Rights Issue is an excellent sign and reflects the trust of our shareholders. By offering existing shareholders the opportunity to increase their stake, we acknowledge their trust while securing essential funds for strategic expansion and acquisitions that promote sustainable growth. Our priority remains delivering long-term value for stakeholders and driving consistent growth.” Globe Textiles fixed a Rights Entitlement Ratio of 1:2, i.e. one equity share for every two equity shares held by shareholders on the record date (January 17, 2025), for the issue. The Company will issue 15.01 crore fully paid-up equity shares of a price of face value of Rs. 2 each in the rights issue.

Highlights: • The company is issuing shares in the Rights Issue at Rs. 3 per share as compared to the latest price of Rs. 3.93 per share on 23 January 2024 • The company recorded more than 2x net profit of Rs. 380 lakhs for Sep-24 compared to net profit of Rs. 134 lakhs in Sep-23.

• The company also recorded PAT of Rs. 652 lacs in first 6 months of FY24-25 which is more than 12 months PAT Rs. 575 lakhs of FY23-24.

The funds raised through the right issue will be utilized for the acquisition of equity shares in Globe Denwash Private Ltd, repayment of unsecured loan availed from related parties, meeting working capital requirements and for General Corporate Purposes.

For the quarter ended September 2024, the company’s net profit more than doubled to Rs. 380 lakh as compared to net profit of Rs. 134 lakh in the corresponding quarter of the previous year. Revenue during Q2 of FY 24-25 was Rs. 15,019 lakh as compared to Rs. 10,611 lakh in Q2 of FY23-24.

Established in 1995, Globe Textiles (India) Limited manufactures garments, cotton printed fabrics, home textiles and fancy fabrics. The company has three manufacturing units in Ahmedabad. The company has a production capacity spread across 300,000 square feet and manufacture and supplier of 36 million meters of fabric, and 2.5 million bottoms per year The company employs over 1,200 workers and has a team of more than 100 staff members onboard. The company serves both domestic and international markets.

Leveraging over 25 years of expertise, GTIL has perfected a vertically integrated operational model, spanning the entire production spectrum from raw fibre to finished apparel. This streamlined approach enables the company to consistently deliver high-quality products, prioritise sustainability and meet stringent delivery timelines. With a global clientele exceeding 5,000 satisfied customers, the company continues to lead innovation and growth in the textile industry.

About Globe Textiles (India) Ltd Founded in 1995, Globe Textiles (India) Ltd (GTIL) manufactures garments, fabrics, and home textiles. With three manufacturing units in Ahmedabad, the company produces high-quality products for over 5,000 global customers. GTIL’s annual production includes 36 million meters of fabric.

For more information, visit www.globetextilesindia.com (Disclaimer: The above press release comes to you under an arrangement with PNN and PTI takes no editorial responsibility for the same.). PTI PWR PWR