Gangotri Textiles has executed loan documents for availing Rupee Term Loan of Rs 257 crore for the companies expansion cum integration project at Coimbatore. The term loan for the company was through a consortium of bankers including Canara Bank, Corporation Bank, State Bank of Indore, State Bank of Mysore, Syndicate Bank, State Bank of India, State Bank of Travancore and State Bank of Hyderabad.

The land for the project has already been acquired and building construction work has commenced. To meet part of its fund requirements for the project the company is coming out with the follow on Public Issue of Rs 55 crore under book building process. The company has already filed the DRHP with SEBI and is awaiting SEBI's clearance.

Further, the company has informed that on 2 March 2006 the company's board has allotted 16 lakhs share warrants of Rs 50 each to the promoter group amounting to Rs 8 crore. Each share warrant will be convertible into one equity share at the rate of Rs 50 each within 18 months.