Shares of Gokaldas Exports were locked at a 20% upper circuit a day after it entered into a deal to acquire Dubai-based Atraco Group.

Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director, Gokaldas Exports, said, “the acquisition was an important step as Atraco is strategically relevant and possesses a good complementary customer base, operationally strong, and above all, a leader in its own sphere.”

The Atraco Group is a leading apparel manufacturer with a strong market position and customer relationship across the US and Europe.

The said acquisition is expected to close by Q3 FY24.

Through this acquisition, the company aims to gain access to low-cost, duty-free locations for manufacturing.

Sivaramakrishnan Ganapathi said that together, they can deliver a wider choice and value proposition to our global customers.

The company said in an investor presentation, “Atraco additionally has a strong performance record, manufacturing capabilities, high employee productivity and machine efficiency and a series of long-standing relationships with well recognized global apparel brands,”

At 1:35 pm, the shares of Gokaldas Exports were trading at Rs 735.35 or 20% above its previous close of Rs 612.80 on NSE.