On June 10, 2016, Blackstone LLP (Blackstone) a leading UK-based private equity firm, sold 10% of its stake in Gokaldas Export Limited (GEL), India’s leading apparel manufacturer and exporter. The stock was sold for Rs.126.20 . Blackstone had acquired a stake of 68.2% in GEL in the year 2007 at Rs. 275 per share, investing around Rs.4852 million . Blackstone, which is known for making successful private equity deals, sold its holdings for the third time in GEL at a loss since 2014. In 2014, Blackstone sold 5.6% and 4.5% stake for Rs. 83.9 per share and Rs.67.65 per share respectively .

Analysts observed that the investment in GEL was not properly timed. After the investment by Blackstone in the year 2007, the business of GEL was severely impacted by the economic crisis in the year 2008-09, that resulted in a loss of orders from major importing countries like the United States and European countries. The revenues of the firm remained stagnant at around Rs.11,000 million from 2008-09 to 2011-12. In 2011-12, GEL recorded a net loss of Rs. 1320 million. It continued to incur losses till 2014-15. In 2014-15, the firm returned to the profit zone with total revenues amounting to Rs.11,429 million and a net profit of Rs. 613 million . ..

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