Highlights
- Arvind Limited shares gained over 12 percent during Thursday’s trading session.
- Arvind Advanced Materials acquired nearly 61 percent stake in US-based Dalco-GFT.
- The acquisition marks AAML’s entry into the United States technical textile market.
Shares of Arvind Limited (NSE:ARVIND) rose 12.32 percent on May 7, 2026, after the company announced a strategic acquisition through its wholly owned subsidiary, Arvind Advanced Materials Limited (AAML).
The stock traded at ₹ 437.70 on the NSE during the afternoon session, compared with the previous close of ₹ 389.70. The stock opened at ₹ 405.00 and touched an intraday high of ₹ 445.45. The day’s low remained at ₹ 405.00, while VWAP stood at ₹ 433.30.
Source: TradingView
AAML Acquires Controlling Stake in Dalco-GFT
Arvind said AAML acquired nearly 61 percent controlling interest in Dalco-GFT, a US-based manufacturer of specialized needle-punched non-woven fabrics. The acquisition values Dalco-GFT at approximately USD 136 million, based on 7.75x CY25 EV/EBITDA.
Dalco-GFT operates two manufacturing facilities in North and South Carolina with a combined annual production capacity of nearly 75 million pounds. The company serves sectors including automotive, industrial, construction, flooring, furniture, and furnishing applications.
According to the company, Dalco-GFT reported CY25 revenue of nearly USD 100 million with EBITDA margin of around 17 percent and return on capital employed of about 40 percent.
Strategic Expansion Into US Technical Textile Market
The acquisition marks AAML’s entry into the United States, described by the company as the world’s largest technical textile market. Arvind said the transaction expands its access to an estimated USD 2.5 billion addressable market across multiple nonwoven textile segments.
The company stated that needle-punch nonwovens are adjacent to AAML’s industrial products and filtration capabilities, reducing technology-related diversification risks. AAML also expects customer expansion through Dalco-GFT’s network of more than 75 active customers.
Commenting on the acquisition, Vice Chairman Punit Lalbhai said, “The acquisition of Dalco-GFT marks a transformational milestone in AAML’s growth journey.”
Dalco-GFT Chief Executive Officer Joey Duncan said the company will continue focusing on customer relationships, operational capabilities, and growth initiatives under AAML ownership.
Financing and Transaction Structure
The acquisition is financed through a combination of debt raised at both Dalco-GFT and AAML levels. Arvind stated that AAML intends to acquire the remaining stake from rollover shareholders over the next four years.
The company added that the transaction is expected to be margin and earnings-per-share accretive from the first year after completion.
Share Performance
Key Risks Investors Should Track
- Acquisition integration may impact operational execution across geographies.
- Higher debt financing could increase financial obligations in coming years.
- US market demand fluctuations may affect technical textile business performance.
- Currency movement risks may influence consolidated financial results.
Summary
Arvind (NSE:ARVIND) shares climbed over 12 percent after the company announced AAML’s acquisition of nearly 61 percent stake in US-based Dalco-GFT. The transaction gives AAML entry into the US technical textile market and expands its manufacturing footprint outside India. Dalco-GFT reported approximately USD 100 million revenue in CY25 and operates across automotive, industrial, and construction-focused nonwoven textile segments.
FAQs
Q: Why did Arvind shares rise on May 7, 2026?
A: Arvind shares gained after AAML announced acquisition of controlling stake in US-based Dalco-GFT.
Q: What business does Dalco-GFT operate in?
A: Dalco-GFT manufactures specialized needle-punched non-woven fabrics for industrial, automotive, and construction-related applications.
Q: How much stake did AAML acquire in Dalco-GFT?
A: AAML acquired nearly 61 percent controlling stake in Dalco-GFT through the announced transaction.