Gloster Limited 's board of directors has authorized a strategic investment of approximately ₹5.00 crore to acquire a 49% equity stake in a new Special Purpose Vehicle (SPV) focused on manufacturing high-quality jute gunny bags. The investment will be executed through cash consideration in one or more tranches, with the first tranche tentatively scheduled for completion by March 31, 2026.

Investment Structure and Financial Details

The board's authorization establishes Gloster as a minority stakeholder in the SPV, which is yet to be incorporated. The company has disclosed this acquisition under Regulation 30, providing comprehensive details about the strategic investment structure.

SPV Objectives and Business Focus

The SPV will be incorporated with the primary objective of cost-efficient manufacturing and supply of high-quality jute gunny bags. This strategic focus aligns with Gloster's expertise in the jute industry and positions the company to capitalize on the growing demand for sustainable packaging solutions in agricultural and industrial sectors.

Regulatory and Corporate Governance Aspects

The acquisition will not fall under related party transactions initially. However, post-acquisition, the SPV will become an associate company of Gloster Limited and consequently a related party. The company has confirmed that no governmental or regulatory approvals are required for this acquisition, streamlining the investment process.

This investment represents Gloster's strategic expansion within the jute manufacturing ecosystem, leveraging the company's 152 years of excellence with natural fibers to enter the specialized gunny bag production segment.

Gloster Limited , a prominent player in the jute industry, has announced a significant corporate restructuring move. The company's Board of Directors has approved a modified Scheme of Amalgamation, which involves merging two of its wholly-owned subsidiaries - Gloster Lifestyle Limited and Gloster Specialities Limited - with the parent company.

Key Details of the Amalgamation

• Original Approval: The scheme was initially approved in November 2024.
• Current Status: The modified scheme is now subject to requisite approvals under Sections 230 to 232 of the Companies Act, 2013.
• Financial Snapshot: For the year ended March 31, 2025, Gloster Limited reported:
  • Turnover: Rs. 62,668.27 lakhs
  • Paid-up share capital: Rs. 1,094.33 lakhs

Subsidiaries Involved

Implications of the Amalgamation

1. Efficient Resource Utilization: The company states that this amalgamation will enable more efficient utilization of capital and assets.
2. Future Growth: The move is expected to strengthen the foundation for future growth.
3. Shareholding Impact: No shares will be allotted in exchange as the subsidiaries are wholly-owned.
4. Ownership Structure: There will be no change in the shareholding pattern of the listed entity.

Recent Financial Performance

The unaudited consolidated financial results for the quarter ended September 30, 2025, reveal:

• Revenue from operations: Rs. 36,010.81 lakhs
• Profit before tax: Rs. 1,039.07 lakhs
• Profit for the period: Rs. 767.28 lakhs

Segment-wise Performance

The amalgamation is a strategic move by Gloster Limited to streamline its operations and potentially enhance its market position in the jute industry. Investors and stakeholders will be keenly watching how this corporate restructuring impacts the company's future performance and growth trajectory.