Gokaldas Exports Board Approves BRFL Textiles Merger Proposal

Gokaldas Exports Ltd (GEX), a Bengaluru-based garments exporter, said its board has approved the amalgamation of BRFL Textiles Pvt Ltd (BTPL) with the company. The decision was taken at a meeting on August 9, 2025. 

The draft scheme of amalgamation will be implemented under Sections 230 to 232 of the Companies Act, 2013, and is subject to shareholder and regulatory approvals.

Earlier Investments in BTPL Textiles

In June 2024, GEX invested in BTPL through optionally convertible debentures. Earlier this week, the board cleared an increase in GEX’s shareholding in BTPL to 19%. With the proposed merger, BTPL’s operations will be consolidated within GEX.

As of FY25, BTPL reported total assets of ₹877.13 crore and a net worth of ₹147.57 crore. Its turnover for the year stood at ₹371.42 crore. BTPL manufactures a range of fabrics that will now come under GEX’s operations if the merger is completed.

Terms of Merger 

The draft scheme offers BTPL shareholders 2 options for consideration. The first is 40 fully paid equity shares of ₹5 each in GEX for every 3,581 equity shares of ₹10 each in BTPL. The second option is 30 fully paid equity shares of ₹5 each in GEX plus ₹8,952.50 in cash for every 3,581 equity shares of ₹10 each in BTPL.

Including the 19% stake already acquired, the total estimated acquisition cost for BTPL shares by GEX is ₹552 crore. Shareholders of BTPL will be able to choose between the 2 consideration options once the scheme is approved.

The amalgamation will proceed after the required shareholder and regulatory clearances are obtained. Both companies will continue operating separately until all approvals are in place.

Read More: US Tariff Hike Threatens Over 2 Million Jobs in Indian Apparel Sector!

Gokaldas Exports Share Price Performance

As of 12:10 PM on August 11, 2025, Gokaldas Exports share price was trading at ₹697.40, a 2.52% decrease.

Conclusion

If cleared, the merger will bring BTPL’s textile manufacturing business under GEX, combining resources and operations into a single entity.

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