Globe Textiles Rights Entitlement: A Gateway to Growth and Prosperity

Globe Textiles, a leading name in the textile sector offers existing shareholders and new investors a unique opportunity to participate in the company’s steady growth journey by participating in its rights issue.

Below are the key details:

• Closing price: ₹ 3.84 closing price on 28th January 2025

• Right issue price: ₹ 3 per share

• Right Entitlement: 1 share for every 2 shares held

• Rights Issue Opening Date: January 24, 2025

• Rights Issue Closing Date: February 6, 2025

• Renunciation of Rights Entitlement Period: January 24, 2025 to January 31, 2025

• Record Date: January 17, 2025

• Rights Issue Size: ₹ 4,504 lakhs

The Rights Issue shares offered at a favourable price of ₹3 compared to the current market price of ₹ 3.84 closing price as on 28th January 2025, present an appealing opportunity for investors seeking to invest in this potential stock. Investors can buy any portion of Rights Issue at ₹3 per share, offering a strategic and cost-efficient way to gain exposure to a steady growing company.

The offer is already attracting significant interest, showcasing its strong appeal to investors. The subscription window for Global Textile RE (Rights Entitlement) will remain open from January 24 to January 31, 2025. The record date was January 17, 2025.

As a dynamic and resilient player in the textile industry, Globe Textiles has consistently showcased its adaptability to market trends and its commitment to delivering sustainable performance.

Speaking about the rights entitlement Bhavik Parikh, Chairman and Managing Director of Globe Textiles state “The Company is poised for growth in the upcoming year, focusing on key investments in infrastructure, research and development, product innovation, and market expansion to sustain its progress and enhance profitability. The Rights Issue offers investors a great opportunity to increase their stake and be part of the Globe Textiles growth journey. This initiative underscores our commitment to delivering long-term value for all stakeholders while seizing opportunities for future growth.”

Globe Textiles aims to raise ₹4,504 lakhs from the Rights Issue. The funds to be raised are strategically earmarked for critical business objectives, including expansion initiatives, and enhancing working capital leading to further growth of the company. These measures are aimed at strengthening the company’s operations, fostering innovation, and paving the way for future growth.

For the six months ended September 30, 2024, the company achieved a remarkable Net Profit of ₹652 lakhs, surpassing the ₹575 lakhs recorded for the entire FY2023-24.

Additionally, for the quarter ended September 30, 2024, the company reported a significant 102.20% increase in Net Profit, reaching ₹380.76 lakhs compared to ₹188.31 lakhs in the same period of the previous financial year. This robust performance underscores the success of the company’s strategic initiatives aimed at driving revenue growth, improving profitability and expanding its market share.

The above performance also highlights the positive impact of Globe Textiles' strategic acquisition of a 70% stake in Globe Denwash, a company renowned for its expertise in sustainable denim washing and finishing. Globe Denwash employs advanced sustainable processing techniques that significantly reduce energy consumption and incorporate a Zero Liquid Discharge system to maximize water recycling; this acquisition has significantly bolstered Globe Textiles' presence in key international markets, including the UK, US, Europe, and other regions that prioritize partnerships with sustainability-driven organizations.