Raymond shares rallied 9 percent on Thursday, April 27, to hit an all-time high following reports that FMCG giant Godrej Consumer Products is in talks to acquire the company's FMCG arm, i.e. Raymond Consumer Care.
Godrej Consumer Products is in advanced talks for a deal with Raymond for its consumer care business that includes the Park Avenue male grooming brand and Kamasutra condoms, people aware of the development told ET.
During Thursday’s trade, the stock opened at a price of Rs. 1,622 per share against the previous close of Rs. 1,611.85 per share and grew further during the early trading session to touch an all-time high of Rs. 1,756 apiece.
It was trading at ₹1,670 apiece, up by 3.61 percent, at 11:50 a.m. on the NSE.
The stock touched a 52-week low of ₹737 on May 12, 2022, indicating that at the current price, it is trading over 126 percent above that level.
The stock has grown almost 41 percent in the last one month. Moreover, in last one year, it has yielded a return of over 93 percent. It has gained nearly 52 percent in the past five years.
Raymond Ltd, a major textile and real estate company, owns over 47 percent stake in the Raymond Consumer Care business. This business line, which sells Park Avenue and KamaSutra products, had a total revenue of ₹522 crore in the last financial year.
Last year, discussions were held about Good Glamm Group potentially acquiring Raymond's consumer business. However, this plan was eventually dropped.
By partnering with Raymond, GCPL will gain entry into the fragrances and sexual wellness categories and reinforce its standing in the personal care industry, capitalizing on Raymond's authority in the male grooming industry.
The specifics of the agreement have yet to be revealed, but both parties might issue an official statement regarding the transaction later today, as per reports.
Previously, Silver Spark Apparel Limited had announced the acquisition of a 100 percent stake in Raymond America Apparel INC, a New Jersey-based company.
Raymond Limited is an integrated suiting manufacturer from India offering end-to-end solutions for fabrics and garments. It has various brands and subsidiaries and its segments include textile, apparel, garments, tools and hardware, auto components, real estate and others.
According to a MintGenie poll, 4 analysts on an average have a ‘STRONG BUY’ call on the stock.