Comments
Raymond saw its stock price move up by 6.59 per cent a piece, on the back of rumours regarding a land sale by the company.
Monday morning saw reports in the media claiming that the company was looking to sell a 125-acre plot at Thane, off Mumbai. Reports said that the company plans to sell the land for Rs 2,250 crore.
The land was supposed to be developed by the company itself. However, now the company may be looking to sell it, say analysts. They said that the company may not let go of the land completely, opting for joint redevelopment instead.
“An announcement regarding the issue is expected any day now. There were reports that the company has already offered a voluntary retirement scheme to the employees of the Thane plant,” said Mr Sudip Bandyopadhyay, Managing Director and CEO, Destimoney Securities.
Raymond said that it was too early to comment on the issue.
A source close to the development said that there were some issues with the mandate of the land sale because of which the company is not in a position to sell the plot. “Due to certain legal issues, the land cannot be sold. So they will have to go in for joint redevelopment. Plans to redevelop the land into a commercial and residential complex have been on the anvil for a while,” said the source.
The source couldn't confirm any names but added that all the major developers had been contacted.
According to a report on Raymond by MF Global, the company was facing capacity constraints and was planning to shift the 7 million tonnes (mt) Thane plant (spinning and weaving) to Jalgaon by the third quarter of current fiscal, thereby increasing its overall capacity to 38 mt. The Thane plant has been defunct now for about eight months, analysts said.
The Raymond scrip on Monday closed at Rs 379.40, up Rs 23.45. It touched a day's high of Rs. 384.35 and a low of Rs 353. The stock opened the day at Rs 355. A total of 14.23 lakh shares were traded in the day when the two-week average trading quantity was at 1.47 lakh shares.
As on the March 2011, the promoter holding in the company is around 39.06 per cent, while FIIs hold 5.41 per cent, and DIIs 27.77 per cent.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.