Bombay Dyeing stock rises on stake sale reports

PE giants such as WL Ross, Sequoia Capital and JC Flowers in race to acquire stake in company

Shares of Wadia group-owned Bombay Dyeing rose nearly 12.5% today after reports that private equity firms are in talks with the company to buy 24% stake in the textile company.

PE giants such as WL Ross, Sequoia Capital and JC Flowers in the race to acquire the stake in the company, a report from Press Trust of India said The deal could be valued at over Rs 500 crore that the exclusivity period of the due diligence is likely to end in next few days, the report said.

"We have no comments to offer on the newspaper report which is totally baseless, speculative and unsubstantiated", Bombay Dyeing said in a statement to the stock exchanges.

The report said that the due diligence process is in advanced stage and Wadias plan to use the sale proceeds for its realty arm Bombay Realty, which is developing premium projects in Mumbai.
 
Promoters currently own about 52.3% stake in Bombay Dyeing, while domestic institutions and foreign funds together have about 20% stake.

The company's stock which opened at Rs 57.20, reached the intra-day high of Rs 62.50 before closing at Rs 60.