Abstract

Blackstone LLP (Blackstone), a leading UK-based private equity firm, sold 10% of its stake in Gokaldas Exports Limited (GEL) on June 10, 2016, making a loss of Rs.148.80 per share. It had purchased the share at Rs. 275 in the year 2007. Analysts believed that the loss-making deal involving GEL was the result of Blackstone not timing the investment properly. ICICI Bank Limited acquired the stock of GEL on July 21, 2016, at a price of Rs.113.50 – lower than the price at which Blackstone had sold the stock a month earlier. Considering the performance of GEL and the market prospects, there was mixed response in the market to ICICI’s purchase of the stock. The present case study provides information about the global and domestic economic scenario, the textile industry prospects, and as well as financial and business information of GEL to analyze the growth prospects and market value of GEL.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the economic prospects of a country
• Analyze the factors contributing to the growth of the textile industry
• Analyze the scope of Gokaldas Exports Limited in the textile industry given the changes at the global and domestic levels

Keywords

Gokaldas Exports Limited,Fundamental Analysis,EIC Analysis,Textile and Apparel Industry,ICICI Bank Limited,Blackstone LLP,Indian Economy