Update on sale of knitwear manufacturing plant.
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On the reaction day the stock moved 21.3 pts more than Nifty Microcap 250 and 22.3 pts more than its Other Textile Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Gokak Textiles has told BSE that the sale of its knitwear plant at Marihal, Belagavi (Karnataka), originally set to close in January 2026, has been pushed back by three months due to process delays. The deal was agreed in September 2025 with M/s V.G. Parekh & Co., a Karnataka-based real estate developer not linked to the promoters, for Rs. 19.50 Crores against a valuation of Rs. 21.49 Crores. The knitwear unit sits on 15.65 acres of freehold land, contributed only 5.17% (Rs. 5.05 Crores) of FY25 revenue, and carries a negative net worth of Rs. 41.15 Crores. Most specialized machinery was already shifted to the company's Mills Division in 2015-16, and only cutting and stitching activity remained at the plant. Shareholder approval through postal ballot is still pending under Section 180(1)(a) of the Companies Act.
The three-month delay is procedural and unlikely to materially affect shareholder value, but it removes a loss-making, capital-draining unit once completed, potentially improving the company's balance sheet despite the sale price being below the valuation.