Raymond looking for engineering buyers

Gautam Singhania-led Raymond is up 2.6% at Rs. 254 per share, after touching day’s high of Rs. 259 on BSE. Broader markets are also up about 1.5%. The Rs. 4,100 crore textile major is planning to offload minority stake in its engineering subsidiary JK Files, to either private equity or strategic investors for Rs. 250-300 crore.

JK Files, established in 1949, is the world’s largest manufacturer of steel files with a 30% global market share in cutting and precision tools business. With FY13 gross revenue of Rs. 415 crore, JK Files earns 60% of revenue from exports to 70 countries worldwide. With four plants in India and one in Indonesia, JK Files serves clients such as General Motors, Fiat, Caterpillar and Tata Motors.
 

Raymond has appointed investment banker to find a suitable investor and will use proceeds from the stake sale to fund global buyouts, as well as expanding its manufacturing facilities.