S Kumars jumps on Reid and Taylor stake sale reports
S Kumars Nationwide shares surged over 5 percent on Monday morning on reports that the textile maker was planning to sell a controlling stake in its subsidiary Reid and Taylor to deleverage its balance sheet.
March 25, 2013 / 11:27 IST
Moneycontrol Bureau
S Kumars Nationwide shares surged over 5 percent on Monday morning on reports that the textile maker was planning to sell a controlling stake in its subsidiary Reid and Taylor to deleverage its balance sheet.The Economic Times newspaper quoting sources said that a mandate to sell the premium suiting brand had already been given out and a formal process was expected to be launched in the coming weeks.According to the paper, the promoters are asking for a significant control premium, valuing the company at Rs 3,500-4,000 crore.S Kumars had made several unsuccessful attempts to list the subsidiary, which counts actors Amitabh Bachchan and Pierce Brosnan (James Bond fame) among its brand ambassadors.Earlier this month, reports quoting investement bankers had said the company planned to raise around Rs 600 crore by selling Reid and Taylor shares via qualified institutional placement.The Nitin Kasliwal owned firm had planned to hit the stock markets with a Rs 1,000 crore IPO of Reid and Taylor in 2011, but that plan was later put on backburner amid the volatility in the stock markets.S Kumar's consolidated debt is apparently around Rs 4,000 crore.At 9:35 hrs, S Kumars shares were up 4.1 percent at Rs 8.95 on NSE. The stock had hit a high of Rs 9.50 earlier in the session.
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