Gujarat Cotex rights issue: ₹42.73 cr at ₹5 (2026)

What Gujarat Cotex announced

Gujarat Cotex Ltd, a textiles and hospitality group, has announced a rights issue to raise nearly ₹43 crore to fund expansion projects. The company said the issue size is ₹42.73 crore. The offer comprises 8,54,64,000 fully paid-up equity shares. The rights issue price has been fixed at ₹5 per share. The company is based in Silvassa.

Rights issue size, price, and entitlement ratio

As per the details shared, eligible shareholders can subscribe in the entitlement ratio of 6:1. That means shareholders can apply for six rights equity shares for every one fully paid-up equity share held. The company has positioned the fundraising as support for expansion and to strengthen its financial position. The stated issue price of ₹5 per share is materially below the market prices cited in the reports around late April.

Key dates investors are tracking

The rights issue opened for subscription on April 10, 2026, and is scheduled to close on May 8, 2026. The company has fixed May 5, 2026 as the last date for on-market renunciation of Rights Entitlements (REs). Separate rights issue timelines circulated in the same context also listed April 1, 2026 as the rights record date. Those timelines also mentioned March 30, 2026 as the last date to buy shares and May 12, 2026 as the deemed date of allotment.

Where the money will be used

Gujarat Cotex has disclosed a detailed split of the proposed utilisation. A portion of the proceeds is planned for completion of an upcoming premium hotel project near Sarangpur Hanuman Mandir. The hotel project is described as having 55 rooms and 10 dormitory accommodations. The company also plans to deploy funds toward working capital needs across its businesses. In addition, a part of the proceeds is earmarked for the purchase of a new registered office, with the balance allocated for general corporate purposes and scalability.

Hotel project: what is known so far

The company’s planned premium hotel project is a central element in the stated expansion plan. The disclosed budget for completion is ₹9.60 crore. The location referenced is near Sarangpur Hanuman Mandir. The capacity details provided are 55 rooms and 10 dormitory accommodations.

Business profile and diversification

Gujarat Cotex started as a textile manufacturing firm and has expanded into other verticals. The company has forayed into real estate, hospitality, and agri-commodity trading. Reports also describe the company as operating across textile trading, real estate, hospitality, and agro commodity trading businesses. This rights issue is positioned as funding to support growth across the diversified operations.

Stock price references cited around the announcement

In trading references mentioned alongside the rights issue development, Gujarat Cotex shares were cited at ₹11.35 on a Thursday. Another reference pegged the market price at ₹11.2 as of April 24. A separate update noted the stock at ₹11.20 around 13:50 on April 27, 2026. One comparison highlighted that the stock had closed at ₹5.53 on March 27, 2026, versus the cited ₹11.20 level on April 27, 2026.

Financial performance mentioned in the reports

For the first nine months of FY26 (9MFY26), Gujarat Cotex reported net profit of ₹0.83 crore compared with ₹0.46 crore in 9MFY25, reflecting 79.7% year-on-year growth. Revenue for 9MFY26 was reported at ₹29.86 crore, up 54.7% year-on-year from ₹19.30 crore in 9MFY25. These figures were presented in the same context as the rights issue updates.

Rights issue snapshot

Market impact: what the pricing and structure imply

The rights issue structure gives existing shareholders the option to subscribe at ₹5 per share, while market prices cited in the same period were around ₹11.2 to ₹11.35. The 6:1 entitlement ratio implies a large issuance relative to the existing fully paid-up equity base. The disclosed utilisation mix shows that working capital (₹19.30 crore) is the largest planned use, followed by general corporate purposes (₹10.68 crore) and the hotel project completion (₹9.60 crore). Investors also have a defined window for renunciation of REs, with May 5 set as the last on-market renunciation date.

Why this fundraise matters

The stated plan links fresh capital to expansion across hospitality and other diversified operations, alongside balance sheet support. The earmarking for a premium hotel project adds clarity on a specific capex initiative, including capacity details and an allocated amount. Separately, the company’s reported 9MFY26 revenue and profit growth figures provide context for the operational backdrop during which the capital raise is being pursued. The subscription period ending May 8, 2026 sets a near-term timeline for the company to complete the fundraising.

Conclusion

Gujarat Cotex’s ₹42.73 crore rights issue, priced at ₹5 per share and offered in a 6:1 ratio, remains open until May 8, 2026, with RE renunciation last permitted on May 5, 2026. The company has disclosed allocations toward a premium hotel project, working capital, a new registered office, and general corporate purposes, with allotment timelines also indicated in circulated schedules.