Raymond may sell stake to PE funds; stock gains

MUMBAI: Shares of textile-to-apparel maker Raymond gained momentum in early trade following reports that the promoters may sell some stake to PE funds.

According to TOI report, promoter Gautam Singhania is in talks in with private equity heavyweights, including KKR, General Atlantic and Temasek, to sell 15-20 per cent stake in the company which has an enterprise value of Rs 6,085 crore.

"Besides the American and Singaporean giants, Europe's Capital International and Partners Group as well as local biggie Baring are vying to acquire stake in the 89-year-old company."

The stake sale may help the company raise Rs 1,200 crore which will be utilized to finance Raymond’s retail expansion plans and enhance brand building activities.

At 09:50 a.m.; the stock was at Rs 427, up 2.79 per cent, on the BSE. It touched a high of Rs 436.25 and a low of Rs 424.40 in trade today