Raymond rose 2.22% to Rs 762.30 at 9:45 IST on BSE after the company announced the acquisition of 50% Ansell's stake in a joint venture entity known as JK Ansell Company for 100% ownership.
The announcement was made after market hours yesterday, 17 August 2017.Meanwhile, the S&P BSE Sensex was down 222.71 points, or 0.7%, to 31,572.75. The S&P BSE Mid-Cap index was down 58.19 points, or 0.38%, to 15,170.33.
On the BSE, 31,606 shares were traded in the counter so far, compared with average daily volumes of 89,882 shares in the past one quarter. The stock had hit a high of Rs 764.80 and a low of Rs 750 so far during the day. The stock had hit a record high of Rs 839.80 on 6 July 2017. The stock had hit a 52-week low of Rs 398.15 on 23 August 2016.
The stock had underperformed the market over the past one month till 17 August 2017, falling 6.86% compared with the Sensex's 0.87% decline. The stock had also underperformed the market over the past one quarter, declining 4.76% as against the Sensex's 3.71% rise. The scrip had, however, outperformed the market over the past one year, jumping 74.73% as against the Sensex's 13.53% rise.
The mid-cap textile and apparel major has equity capital of Rs 61.38 crore. Face value per share is Rs 10.
Raymond said that, with the transaction, the sexual wellness and personal care business will continue to remain in JK Ansell which will become wholly owned subsidiary of JK Investo Trade (India) (JKIT), a Raymond Group company. As per the proposed deal, JKIT sells its stake in the non-core gloves business to Pacific Dunlop Holdings (Singapore), a Ansell Group Company.
The acquisition will pave the way for Raymond to further scale up the FMCG business and unlock the immense potential of brand Kamasutra globally. Raymond had announced the formation of its FMCG group last year, offering premium products for personal and home care categories.
On consolidated basis, Raymond reported net loss of Rs 5.87 crore in Q1 June 2017 compared with net loss of Rs 15.59 crore in Q1 June 2016. Net sales rose 13.2% to Rs 1196.88 crore in Q1 June 2017 over Q1 June 2016.
The Raymond Group was incorporated in 1925 and is a textiles manufacturer. The company makes finest fabrics - from wool to wool-blended worsted suiting to specialty ring denims as well as high value shirting.
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