Raymond gains on reports to sell 20% stake to overseas PE funds in apparel business

Raymond shares gained as much as 3.87 per cent on Monday on reports that the company is in talks with overseas private equity funds KKR & Company and Blackstone to sell 20 per cent in its branded apparel business to fund expansion. India’s largest woollen suiting’s maker has appointed Citibank as investment banker for the deal.

At 11.13 am, shares of Raymond were trading 2.23 per cent up at Rs 476.60. The scrip opened at Rs 475 and has touched a high and low of Rs 484.25 and Rs 473, respectively, in trade so far. Sensex was down 132.81 points, or 0.52 per cent, at 25,356.76.

According to the report, the minority stake sale will help expand the apparel business which faces stiff competition from Aditya Birla Group’s Madura Fashion and Arvind Lifestyle, leading apparel makers in India.

For the quarter ended March 2016, the company reported a consolidated net profit of Rs 56.22 crore, up 161.85 per cent, against Rs 21.47 crore in the same quarter a year ago.

Gross sales of the company grew 7.93 per cent yoy to Rs 1,511.35 crore.

Later, the scrip closed 1.86 per cent up at Rs 474.85.

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