Bombay Dyeing under PE lens, up 14%
Bombay Dyeing is up nearly 14% in trade this Monday morning, with heavy volumes of close to 5.8 lakh shares on BSE in the first hour of trade against two-week average of 1.47 lakh shares.
Press reports suggest that marquee PE names such as WL Ross, Sequoia Capital and JC Flowers are eying close to 24% stake in the company jointly for over Rs. 500 crore, which translates into an equity valuation of close to Rs. 2,100 crore for the company, against its current market cap of Rs. 1,250 crore. This is a whopping 68% premium for Nusli Wadia’s textile-cum-retail-cum-real estate firm.
As of 30th June 2013, promoters held 52.29% stake in the company, while 131 domestic and foreign institutions held 25.11% stake (including LIC, Reliance Mutual Fund, Morgan Stanley, DSP Blackrock Mutual Fund, Oriental Insurance).