Update on Sale of Knitwear Manufacturing Plant.
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Gokak Textiles has been trying to sell its knitwear manufacturing plant at Marihal, Belagavi, Karnataka since September 2025. The plant, set up in 1995 on 15.65 acres of freehold land, was valued at Rs. 21.49 crore but agreed to be sold for Rs. 19.50 crore to M/s V.G. Parekh & Co., a real estate developer not connected to the promoter group. The knitwear business had become unprofitable with negative net worth of Rs. 41.15 crore and contributed only 5.17% (Rs. 5.05 crore) to total revenue in FY25. The sale, which requires shareholder approval via postal ballot, was originally expected to close in January 2026 but has now been delayed twice by three months each due to process delays, pushing completion to around April 2026.
The divestment removes a loss-making division from Gokak Textiles' books, which could improve overall profitability. However, the repeated delays signal procedural hurdles and shareholders should monitor for further postponements or potential deal cancellation.