Bombay Dyeing jumps as much as 16% on stake sale report
Bombay Dyeing shares gained as much as 16 per cent in early morning trade on Monday after some reports suggested that some global private equity companies have expressed their interest in acquiring a stake together in the Indian company.
Citing anonymous sources, news agency PTI said at least three global private equity companies have plans to acquire up to 24 per cent stake in Bombay Dyeing. The report also said that the potential acquirers are ready to pay more than Rs 500 crore for the stake.
The three private equity companies named in the report are: JC Flowers, WL Ross, and Sequoia Capital.
The also claimed that talks about the deal were in advanced stage, and that the Wadias-led group wants to use proceeds from the sale to develop its realty arm Bombay Realty.
The report said, "The due diligence process is in advanced stage and Wadias plan to use the sale proceeds for its realty arm Bombay Realty, which has a couple of posh projects underway and owns a huge land-bank in Mumbai."
Wadias currently own 52.3 per cent stake in Bombay Dyeing, while domestic institutions and FIIs jointly own nearly 20 per cent stake in the company.
At 09:34 today, Bombay Dyeing shares were trading at Rs 61.00 apiece, up Rs 14.34 per cent on the Bombay Stock Exchange.