NSE grants in-principle approval to Globe Textiles' rights issue; funds to fuel growth

New Delhi, Feb 22 (PTI) The National Stock Exchange (NSE) has granted in-principle approval to garment manufacturer Globe Textiles (India) Ltd for raising over Rs 45 crore through rights issue of shares to fund growth initiatives, the company said on Thursday.

The company's rights issue will open on March 6 for the issuance of 15.11 equity shares at Rs 3 apiece, aggregating a total of Rs 45.34 crore.

Elaborating on the allocation of proceeds, Bhavin Parikh, Chief Executive Officer of Globe Textiles, said: "The funds will fuel our forward integration plans via acquisition translating to enhanced capabilities and driving growth. It will enhance our asset base, margins and topline as well as introduce innovative sustainable fashion garments and practices which are sought after by customers from India, Europe and US.

"We are confident that this development will enhance the estimated topline by Rs 120 crore to about Rs 520 crore while improving margin by 2027-28," he added.

The acquisition will enhance Globe Textile's capabilities with state-of-the-art facilities including automated washing tumblers and dryers, advancing processing and sample development. This addition will increase garment processing capacity to 20,000 units per day and 6 lakh units per month, significantly boosting production, the company said in a statement.

Shareholders will be entitled to one right equity share for each fully paid-up equity share held as on the record date of February 23.

Globe Textiles offers a comprehensive range of textile and apparel products and services. PTI SP HVA