Agreement to Sale of Plant located at Marihal, Karnataka.
Price
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Awaiting price reaction for this filing.
Gokak Textiles has signed an agreement on September 9, 2025 to sell its knitwear manufacturing plant at Marihal, Belagavi, Karnataka, along with the 15.65-acre freehold land, to M/s V.G. Parekh & Co., a Karnataka-based real estate developer unrelated to the promoters. The agreed sale price is Rs. 19.50 crore, against a May 2025 valuation of Rs. 21.49 crore. The knitwear unit contributed only Rs. 505.47 lakhs (5.17%) of total revenue in FY25 and carried a negative net worth of Rs. (4,115.21) lakhs, making it a loss-making drag on the company (whose own net worth is deeply negative at Rs. (15,815.77) lakhs). The sale is expected to complete by January 2026 and requires shareholder approval via postal ballot under Section 180(1)(a) of the Companies Act, 2013.
This is a non-core, value-draining asset sale that could help the company reduce liabilities and simplify operations, though the deal price is below the assessed value. Shareholders should watch the postal ballot outcome and January 2026 completion, as successful execution would be a modest positive step toward cleaning up a deeply negative balance sheet.