The Hindu Business Line : PE investment buzz on Gokaldas Exports

Gokaldas Exports, a Bangalore-based Hinduja Group textiles outfit, buzzed on unconfirmed reports that certain prominent overseas private equity players, who have been in negotiations with the promoters for picking up stake in the company, have come very close to execute the deals.

Mr Rajendra Hinduja, Executive Director of the company when contacted over phone on Thursday had this to say to Business Line: “We are aware of some rumours doing the rounds, which obviously cannot be worth an official respons e. As of now, we do not have anything to report on the subject”.

According to market sources, the deals could be through within this month and at a price of around Rs 300 per share, indicating significant value unlocking and additional premium to the present market price. The Rs 5 face-valued stock on Thursday closed up around 6 per cent at Rs 231.60 after touching an intra-day high of Rs 239.50. The counter attracted a traded quantity of 1.27 lakh shares on the NSE and 1.49 lakh shares on the BSE.

Currently, the promoters hold 70.09 per cent of the total paid-up equity of Rs 17.19 crore. The free reserves, however, stand at Rs 391.18 crore. FII holding is placed at 8.67 per cent. Individuals (non-promoter and non-institutional) hold only around 5 per cent.

The company reported an EPS of Rs 3.06 for the first quarter to June 30, 2007 and during the financial year 2006-07 it recorded an EPS of Rs 22.52.

Jayanta Mallick

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