Multibagger Stock Alert! THIS Textile Stock Jumps 100% In One Month | Do You Own?

Gujarat Cotex share price has more than doubled in a month, after the company unveiled a ₹42.73 crore rights issue for expansion across key segments. The offer price is ₹5 per share, well below the market level, and the issue is scheduled to close on May 8, 2026.

The multibagger penny stock has shown sharp moves in recent months. Gujarat Cotex share price jumped over 100% in the last 1 month, climbed 35% in 3 months, and gained 42% over 6 months. Over a 1-year period, however, the scrip still shows a 6% decline.

Gujarat Cotex share price rights issue terms and structure

The rights issue for Gujarat Cotex share price opened on April 10 and will remain open until May 8, 2026. Eligible investors can buy shares at ₹5 each, compared with the April 24 market price of ₹11.2. The entitlement ratio is 6:1, allowing six rights shares for every one share held.

Through this issue, Gujarat Cotex plans to issue more than 8.54 crore equity shares, targeting total proceeds of ₹42.73 crore. The penny stock, with a market capitalisation of about ₹112 crore, hit a 52-week high of ₹11.60 on April 20, 2026, and a 52-week low of ₹4.26 in October 2025.

Trading interest has remained firm. On the latest trading day, Gujarat Cotex share price rose nearly 1% on BSE, touching an intraday high of ₹11.29 per share. This fresh move followed the sustained rally that began after the fund-raising plan was first disclosed to the market.

Use of funds and Gujarat Cotex share price rights issue allocation

The company has clearly outlined how the rights issue funds will be used. Gujarat Cotex will spend ₹9.60 crore on a premium hotel project near Sarangpur Hanuman Mandir, featuring 55 rooms and 10 dormitories. Working capital across its various operations will receive ₹19.30 crore.

In addition, Gujarat Cotex plans to spend ₹2.13 crore to purchase a new registered office. The remaining ₹10.68 crore from the rights issue is marked for general corporate purposes. Management said, "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."

Gujarat Cotex share price and business performance

Recent financial numbers show stronger operations backing the Gujarat Cotex share price move. For the nine months ended FY26, the company reported revenue of ₹29.86 crore, a 54.7% year-on-year increase. Net profit for the same period rose 79.7% year-on-year to ₹82.6 lakh, signalling better profitability.

The company highlighted its broader vision, saying, "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."

Gujarat Cotex began as a textile manufacturing firm and later moved into fabric trading. Over time, it expanded into real estate development and is now venturing into hospitality through the Sarangpur hotel project. The company has also entered agro-commodity trading, aiming to build a multi-segment presence across several sectors.

This diversification strategy, together with the rights issue, is intended to scale operations and support future growth. The combination of textiles, real estate, hospitality, and agro-commodity trading gives Gujarat Cotex multiple revenue streams, which investors are tracking while assessing Gujarat Cotex share price moves on the exchanges.