20% Upper Circuit: Textile stock skyrockets after Co. plans to sell its entire stake to Roadway Solutions

Synopsis:
Soma Textiles & Industries hit a 20 percent upper circuit after it announced that Roadway Solutions will acquire the entire stake in the company through an open offer. In this article, we will dive deep into the details.

The shares of this textile stock are in focus after the company announced that Roadway Solutions and other PACs will acquire a stake in it through an open offer. In this article, we will dive deep into the details.

With a market capitalisation of Rs 178 per share, the shares of Soma Textiles & Industries Ltd are currently trading at Rs 54 per share, down by 17.41 percent from its 52-week high of Rs 65.39 per share. Over the past five years, the stock has delivered a robust return of 1,825 percent.

Soma Textile, through a stock exchange filing, announced that the shares of the company will be acquired by Roadway Solutions India Infra Ltd along with Ameet and Teja Gadhoke. 

They have signed a deal to buy a 74.98 percent stake, which includes 2.47 crore shares, from the current promoters for Rs 87.67 crore. After this, they have made an open offer to purchase an additional 25.02 percent stake, or 82.65 lakh shares, from public shareholders at Rs 47.14 per share, following SEBI regulations. Once the transaction and open offer are finalised, the acquirers will gain complete control of the company.

Financial Highlights

Soma Textiles reported a revenue of Rs 9 crores in FY25, up 50 percent from Rs 6 crores in FY24. It reported a net profit of Rs 69 crores in FY25, up 229 percent from Rs 21 crores in FY24. However, it is to be noted that in the past the company’s financials were not consistent and it was a loss-making company.

The stock delivered a negative ROE and ROCE of 0.27 and 0.92 percent, respectively and has a minimal debt of 2.91 crore as compared to its cash reserves of Rs 125 crore.

Soma Textiles & Industries Ltd is an Indian company that makes cotton yarn, denim fabrics, garments, and dyed fabrics. It operates through three segments—Denim, Piece Dyed, and Jeans Wear. Its clients include Arvind Life Style, ITC, Indigo Nation, and Reliance Trends. The company’s plant is located in Ahmedabad.

Written by Satyajeet Mukherjee

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