The Rs. 4,504 lakh Rights Issue of Globe Textiles (India) Ltd (NSE-GLOBE) saw a subscription of 14.69% on the first day of opening. The company, known for manufacturing garments, cotton printed fabrics, home textiles, and fancy fabrics, launched the Rights Issue on January 24, with the subscription window open until February 6.The shares in the Rights Issue are being offered at Rs. 3 per share, which is lower than the recent market price of Rs. 3.93 per share on January 23. On January 24, the closing price was Rs. 3.78 per share. Investors who do not currently hold Globe Textiles shares can also participate in the Rights Issue by purchasing Rights Entitlements (NSE Symbol: GLOBE-RE1). On the first day, 67.85 lakh units of Globe-RE1 were traded on the exchange, with prices fluctuating between Rs. 0.55 and Rs. 0.72 before closing 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 Ltd, expressed optimism about the initial response, stating, “The 14.69% subscription on the first day is a strong indication of shareholder confidence. This Rights Issue gives existing investors a chance to increase their stake while helping the company raise funds for strategic expansion and acquisitions. Our goal is to create long-term value for stakeholders and ensure sustainable growth.”The company has set the Rights Entitlement Ratio at 1:2, meaning eligible shareholders will receive one equity share for every two shares they hold as of the record date, January 17, 2025. Through this issue, Globe Textiles aims to issue 15.01 crore fully paid-up equity shares with a face value of Rs. 2 each.
The funds raised will be used for acquiring equity shares in Globe Denwash Private Ltd, repaying unsecured loans from related parties, meeting working capital needs, and other general corporate purposes.The company has reported strong financial growth. For the quarter ending September 2024, Globe Textiles’ net profit more than doubled to Rs. 380 lakh compared to Rs. 134 lakh in the same quarter of the previous year. Revenue in Q2 FY24-25 reached Rs. 15,019 lakh, up from Rs. 10,611 lakh in Q2 FY23-24. Additionally, the company posted a profit after tax (PAT) of Rs. 652 lakh in the first half of FY24-25, surpassing the full-year PAT of Rs. 575 lakh for FY23-24. Established in 1995, Globe Textiles (India) Ltd operates three manufacturing units in Ahmedabad, with a production capacity covering 300,000 square feet. The company produces 36 million meters of fabric and 2.5 million bottoms annually. Employing over 1,200 workers and 100 staff members, it serves both domestic and international markets, catering to more than 5,000 global clients.With a vertically integrated business model, Globe Textiles ensures efficiency from raw fiber to finished apparel. This approach enhances product quality, maintains sustainability, and ensures timely delivery. The company remains committed to innovation and long-term growth in the textile sector.