Gujarat Cotex Ltd — Capital/Financing Update 2025

May 14, 2025

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Regd.Office: Shop No. 4, 1st Floor, Shanti Complex, Opp. Patel Petrol Pump, Amli, Silvassa396230 Contact No. +91 93279 77729 Email : jayprabha@hotmail.com, Website : www.gujcotex.co Corporate Identity Number : L46695DN1996PLC000116

Date: 14/05/2025

To The Department of Corporate Services BSE Limited P. J. Towers, Dalal Street Mumbai – 400001

Scrip Code: 514386

Subject: Withdrawal of Application for “In-Principle Approval” for Proposed Preferential Issue of Securities

Dear Sir/Madam,

We write to formally inform you that the Board of Directors of Gujarat Cotex Limited (“the Company”) has resolved to withdraw the application for “In-Principle Approval” submitted to BSE Limited, pertaining to the proposed preferential issue and allotment of:

• Up to 1,36,56,000 (One Crore Thirty-Six Lakhs Fifty-Six Thousand) warrants of the Company at a minimum price of Rs. 16.70/- (Rupees Sixteen and Paise Seventy only) per warrant (inclusive of premium), each convertible into one equity share of face value Rs. 5/- within a period of 18 months from the date of allotment; and,

• Up to 17,03,050 (Seventeen Lakhs Three Thousand Fifty) equity shares of face value Rs. 5/- each, to be allotted in consideration other than cash towards outstanding dues of Rs. 2,84,40,935/- (Rupees Two Crores Eighty-Four Lakhs Forty Thousand Nine Hundred ThirtyFive only) payable to M/s. Octagon Infratech Ltd , at the same price of Rs. 16.70/- per share,

pursuant to the provisions of Regulation 28(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 read with Announcement dated 27.02.2025 along with Corrigendum of Postal Ballot Notice dated 28.03.2025.

Further, the decision to withdraw the preferential allotment is primarily due to market volatility and a significant decline in the market price of the Company’s equity shares. The current capital market environment is characterized by heightened uncertainty and significant price fluctuations, which have materially impacted investor sentiment. This ongoing volatility, coupled with a downward trend in the Company's share price, has led to investor reluctance toward engaging in new issuances. Consequently, this disparity has resulted in a lack of investor confidence and enthusiasm for the preferential issue.

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Regd.Office: Shop No. 4, 1st Floor, Shanti Complex, Opp. Patel Petrol Pump, Amli, Silvassa396230 Contact No. +91 93279 77729 Email : jayprabha@hotmail.com, Website : www.gujcotex.co Corporate Identity Number : L46695DN1996PLC000116

In light of these developments, the Company reaffirms its commitment to transparency and stakeholder confidence. We wish to assure you that the withdrawal of the preferential allotment does not impact the Company’s financial stability, operational integrity, or growth trajectory . This decision has been taken prudently in the best interest of our shareholders, with a view to safeguarding long-term value and maintaining financial discipline.

The Company remains committed to exploring alternate avenues for capital raising when market conditions become conducive and investor confidence is restored.

You are requested to kindly take the above on record and acknowledge receipt of this communication.

Thanking you,

Yours faithfully,

For Gujarat Cotex Limited

SHAILESH Digitally signed by SHAILESH J PAREKH J PAREKH Date: 2025.05.14 12:04:32 +05'30'

Shaileshkumar Jayantkumar Parekh Managing Director DIN: 01246270