S Kumars rallies 8% on fund raising plans by selling Reid and Taylor shares

NEW DELHI: S. Kumars Nationwide Ltd ( SKNL) surged about 8 per cent in early trade on Monday on reports that the company is planning to raise about Rs 600 crore by selling shares of its Reid and Taylor (India) Ltd through a QIP.

At 10:00 am, SKNL pared some of its morning gains and was trading 6.09 per cent higher at Rs 9.40. It has hit a low of Rs 9.15 and a high of Rs 9.78 in trade today.

“The money will be used to pay off the company’s debt, said one of the three people on condition of anonymity,” said the media reports.

“In the past, SKNL had planned to list its Reid and Taylor business in 2010, however, due to the unfavorable market conditions, the listing didn’t happen,” Angel Broking said in a report.

“The promoters have dropped the IPO plans as of now as the market conditions have not improved substantially yet; and, in addition, the performance of SKNL’s stock isn’t well either in the market,” the report added.

The brokerage firm has a ‘neutral’ view on the stock.