Raymond shares gain on LVMH investment talks

MUMBAI: Bucking a weak stock market, shares of Raymond on Monday rose by nearly 3 per cent amid reports that a private equity arm of luxury products group LVMH might invest about USD 150 million in its Raymond Apparel unit.

Raymond Ltd, however, said in a regulatory filing that there was no such proposal before its Board of Directors.

According to a media report this morning, L Capital Asia, the private equity arm of LVMH, was in talks for to acquire a minority stake in Raymond Apparel. If finalised, this could be the largest private equity investment in an Indian apparel company.

Helped by the report, the Raymond shares opened on a bullish note this morning and gained over 10 per cent during the intra-day trade. However, the stock pared most of its initial gains after the company's clarification and settled 2.78 per cent higher at Rs 360.90 on the BSE.

At the NSE, the scrip closed at Rs 359, up 2.41 per cent. The surge in the stock was in sharp contrast with the weak broader market, where the barometer Sensex ended the day 274.12 points lower at 17,362.87.