Bombay Dyeing jumps 16% on stake sale buzz to PE firms

Moneycontrol Bureau

Shares of Bombay Dyeing jumped over 16 percent in early morning trade on Monday. Investors are excited about the stock on buzz that at least three global private equity firms are likely to acquire up to 24 percent stake jointly in Bombay Dyeing.

The deal is valued at over Rs 500 crore. According to PTI sources, WL Ross, Sequoia Capital and JC Flowers are in the fray for the acquisition.

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"Sources said, however, that 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," the report quoted.

Promoters currently own about 52.3 per cent stake in Bombay Dyeing, while domestic institutions and foreign funds together have about 20 per cent stake.

At 09:34 hrs Bombay Dyeing and Manufacturing Company was quoting at Rs 61.00, up Rs 7.65, or 14.34 percent on the BSE.

(With inputs from PTI)