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Last Updated : Feb 08, 2019 10:24 AM IST | Source: Moneycontrol.com

Raymond recovers 7% as management clarifies on governance concerns

Textile and branded apparel company Raymond closed 8 percent lower on February 7 on the BSE, its worst close since October 25

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Raymond rallied over 7 percent in trade on February 8 after the management in a release to exchanges clarified that all the related party transactions are undertaken in compliance with laws, and have made relevant disclosures.

Textile and branded apparel company Raymond closed 8 percent lower on February 7 on the BSE, its worst close since October 25, after a media reported related party transactions between the company and an entity owned by its promoter Gautam Singhania.

At 09:30 am, Raymond was up 6.4 percent. It hit an intraday high of Rs 700 and a low of Rs 659. The 52-week low stands at Rs 593.

In the last four financial years (2014-2018), JK Investors bought goods worth Rs 993 crore from Raymond and sold goods worth Rs 1,613 crore back to the company, said a BloombergQuint report. Singhania holds 91 percent stake in JK Investors.

“The information carried in the media story relating to related party transactions is entirely misleading and misconstrued. We categorically place on record that all Related Party transactions are transparently disclosed and are at arm's length in the ordinary course of business,” said the company.

“Additionally, these are reviewed quarterly by auditors and are subjected to annual review by competent professional firms for "Arm's Length Price" test in accordance with Companies Act,” it clarified.
First Published on Feb 8, 2019 10:24 am
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