Blackstone Group made an official statement on Monday about their plans to buy 50% stake in Gokaldas Exports for Rs 676 crore. The shares of Gokaldas Exports were trading with a gain of 12% on Tuesday.

At 11:02 am, the Gokaldas Exports share climbed was up by 11.93% to Rs 256.10. So far, it has seen a high of Rs 274.40 and low of Rs 251.60 with high volumes. There were already 0.3 million shares traded against the two-week average of 47,813.

In addition to buying stake from Hinduja Family, Blackstone has made a public offer to acquire up to 68,75,200 equity shares representing 20% of the capital at Rs 275 per share. The offer opens October 7 and closes October 24.

In an official statement issued on Monday, Blackstone informed that it sees large opportunities in the garments outsourcing business and expects firms from its overseas portfolio and extended network to outsource manufacturing to a 400-acre so-called special economic zone that Gokaldas is setting up at Kanakapura outside Bangalore. Blackstone will pay USD 165 million to Hinduja Family, which owns 70 % stake in the company. After the stake sale, Hindujas will still hold 20% share in the company.

Gokaldas Exports reported a net profit of Rs 10.52 crore and sales of Rs 261 crore for the quarter ended June 30, 2007. The company is having a good market share in overseas markets and the current deal is the biggest so far in the Indian Garment Export sector.