Singer India raises Rs 57 crore from IIFL, others; stock jumps 5%

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Shares of Singer India Ltd jumped 5 percent on December 19 after the Board of Directors approved the preferential allotment issue of 7.48 million equity shares at a price of Rs 76 per equity share.

This will help the company raise Rs 56.82 crore from investors The Preferential Issue is subject to various approvals from the Company’s shareholders. Investors include K. Raheja Private Limited, IIFL Private Equity Fund - Series 2, PGA Securities and Boon Investment, among others.

The stock ended the day up 5 percent at Rs 82.25, a signal that investors see the development positively.

The sewing machine maker said funds from the issue will enable the company to strengthen its brand and distribution channels, fulfil its additional working capital requirements for the expansion of its businesses and enable investments in product design upgradation and system technology upgradation among others.

“We are extremely happy to welcome our new set of investors in the Company,” said Rajeev Bajaj, MD of Singer India. “The development will go a long way in strengthening Singer brand presence as an international brand in India and provide the impetus for future growth.”

DAM Capital Advisors Limited acted as the exclusive financial advisor for the company.