Penny stock Gujarat Cotex share price soars over 100% in the last 1 month after the company announced plans to raise ₹42.73 crore through a rights issue to support its expansion across hospitality, real estate, and core business segments.
The issue, which opened on April 10, will close on May 8, 2026, offering shares at ₹5 apiece—a steep discount to the market price of ₹11.2 as of April 24. The offer is structured in a 6:1 entitlement ratio, meaning shareholders can subscribe to six rights shares for every one share held. In total, the company plans to issue over 8.54 crore equity shares to raise the targeted amount.
Gujarat Cortex stock has also been gaining in recent times, advancing 35% in the past 3 months and 42% in the last 6 months. However, in the past 1 year, the scrip has lost 6%.
The penny stock, with a market capitalisation of ₹112 crore, has hit its 52-week high of ₹11.60 on 20 April 2026 and its 52-week low of ₹4.26 in October 2025.
Just today, the multibagger stock rose 1% to its day’s high of ₹11.29 per share on BSE.
Rights Issue details
The proceeds from the rights issue are earmarked for multiple growth initiatives. Gujarat Cotex plans to allocate ₹9.60 crore toward completing its upcoming premium hotel project near Sarangpur Hanuman Mandir, which will feature 55 rooms and 10 dormitories. Another ₹19.30 crore will be used to meet working capital requirements across its diversified operations, while ₹2.13 crore is set aside for acquiring a new registered office. The remaining ₹10.68 crore will be deployed for general corporate purposes.
“The proceeds from the rights issue will be strategically deployed to accelerate our expansion plans, strengthen our financial position, and support long-term growth across our diversified business segments,” the company said.
Financial performance has remained strong, with the company reporting revenue of ₹29.86 crore for the nine months ended FY26, marking a 54.7% year-on-year growth. Net profit rose 79.7% YoY to ₹82.6 lakh during the same period, indicating improving operational momentum.
“Today, the company has grown to a diversified enterprise operating across textiles, real estate, hospitality, and agro-commodity trading, driven by a strong commitment to quality, innovation, and sustainability. The company has a mission is to deliver high-quality products and services that meet evolving customer needs, contribute to community development, and uphold our core values of sustainability and innovation,” it said in a press release.
Founded as a textile manufacturing company, Gujarat Cotex has steadily diversified its business over the years. It transitioned into fabric trading, expanded into real estate, and is now entering the hospitality segment, alongside a recent foray into agro-commodity trading. The company’s multi-segment strategy reflects its focus on scaling operations and tapping new growth opportunities across sectors.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
