Of the total consideration, Rs 247.5 crores is being paid by way of preferential allotment of shares of Gokaldas Exports through share swap.

The Matrix Clothing group is a manufacturer of high-quality men’s, ladies’, and children’s knitwear apparel for renowned brands with major geographical exposure to Europe, the UK, and North America. The group operates out of Gurgaon, Haryana and has five manufacturing facilities – 4 in Gurgaon, Haryana, and 1 in Ranchi, Jharkhand.

Through this deal, GEL receives access to the knit apparel business segments, a mutually exclusive global customer base, greater access to European and the UK markets, geographical diversification and low-cost capacity expansion potential in the future.

Sivaramakrishnan Ganapathi, vice chairman and managing director of Gokaldas Exports, said: "We are very excited to welcome Matrix’s leadership team, and their employees to the GEL group. We have always believed in continuously adding production capacity at strategic locations enhancing our value proposition to our valued customers."

Separately, the company also announced its earnings for the quarter ended on 31 December 2023.

Gokaldas Exports has reported 25% fall in consolidated net profit to Rs 30.4 crore on a 6% rise in total income to Rs 559.8 crore in Q3 FY24 as compared with Q3 FY23.

While EBITDA declined by 3% YoY to Rs 70.5 crore, EBITDA margin contracted by 112 basis points YoY to 12.6% in the third quarter.

Sivaramakrishnan Ganapathi said, "Our performance reflects a good recovery, both on a YoY and sequential basis, as we have overcome most of the business headwinds prevalent in the previous quarters. We intend to build on the revival and continue the growth momentum. We will stay focused on improving operating parameters and remain confident in the medium to long term prospects of the company."

Gokaldas Exports is engaged in manufacturing and exporting of readymade garments for men, women, and children and caters to the needs of several leading international fashion brands and retailers. The company has more than 20 manufacturing facilities, primarily in and around Bangalore.