SYNOPSIS: The Board of this micro-cap company approved a Rs. 42.7 crore rights issue at Rs. 5 per share in a 6:1 ratio, with record date fixed on Wednesday, 1st April 2026, and issue period from 10th April to 8th May 2026.
During Wednesday’s trading session, shares of a company involved in the business of trading textile fabrics and land surged by more than 11 percent on BSE, after the Board of the company approved a Rs. 42 crores rights issue in a 6:1 ratio, with 1st April set as the record date.
With a market cap of Rs. 12.6 crores, shares of Gujarat Cotex Limited are currently trading in the green at Rs. 8.87 on BSE, up by around 7 percent, compared to its previous closing price of Rs. 8.3. The stock has delivered negative returns of around 36 percent in one year, but has gained by over 5 percent in the last one month.
What’s the News
As per its latest disclosure to the stock exchanges, the Board of Gujarat Cotex Limited has approved the terms of its upcoming rights issue in a board meeting held on 24th March 2026. The company plans to issue a total of 8,54,64,000 fully paid-up equity shares, aggregating to around Rs. 42.7 crores. The rights issue will be offered at a price of Rs. 5 per equity share, which is at par with its face value of Rs. 5 apiece.
Eligible shareholders will receive rights entitlement in the ratio of 6:1, meaning six rights equity shares for every one share held as on the record date. The rights issue is scheduled to open on 10th April 2026, and will close on 8th May 2026, while the last date for market renunciation has been set as 5th May 2026. Meanwhile, the record date for determining eligible shareholders has been fixed as Wednesday, 1st April 2026.
Additionally, the company has made necessary arrangements with depositories NSDL and CDSL to credit rights entitlements in dematerialised form to eligible shareholders’ accounts as of the record date.
Financials & More:
Gujarat Cotex reported a marginal growth in revenue from operations, experiencing a year-on-year increase of over 9 percent, from Rs. 7 crores in Q3 FY25 to Rs. 7.63 crores in Q3 FY26. However, its net profit decreased during the same period from Rs. 0.12 crores to Rs. 0.05 crores, representing a decline of about 58 percent YoY.
Gujarat Cotex Limited operates as a diversified business with interests across textiles, real estate, and hospitality. The company is primarily engaged in the trading of textile fabrics, along with activities in land development, while its hospitality segment is currently under development.
Within the textile segment, the company focuses on fabric production and caters to various applications, including garments, home textiles, industrial use, and customised solutions. In real estate, it is involved in residential, commercial, and mixed-use developments, as well as property investments. Meanwhile, its hospitality business aims to offer premium accommodations, including hotels and resorts, once operational.
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