Textile shares in focus; Raymond, Nahar Spinning hit 52-week high

Garden Silk, Vardhman Polytex, Nahar Spinning, Raymond, Rajapalayam Mill, KG Denim and Indo Count were up 3% -20% on BSE.

Shares of select textile companies were trading higher by up to 20% on BSE on the back of heavy volumes. Garden Silk Mills, Vardhman Polytex, Nahar Spinning Mills, Rajapalayam Mill, Raymond, KG Denim and Indo Count Industries were up 3%-20%, as compared to 0.09% decline in S&P BSE Sensex at 12:09 pm.

Garden Silk Mills soared 20% to Rs 38.55 after the company announced fund raising plan by issuing convertible share warrants to promoters.

“A meeting of the board of directors of the company will be held on October 25, 2016, to consider the proposal for raising of funds aggregating to Rs 30 crore by issue of convertible share warrants / convertible securities in favour of promoter / promoter group of the company,” Garden Silk Mills said in a BSE filing.

The counter has seen huge trading volumes with a combined 2.82 million shares changed hands against an average sub 100,000 shares that were traded daily in past two weeks. There were pending buy orders for 398,589 shares on the BSE and NSE.

Indo Count Industries was up 3% at Rs 781, extending its past three days 9% gain, after rating agency ICRA upgraded long term and short term bank facilities of the company.

Raymond hit a fresh 52-week high of Rs 645, up 4% on BSE in intra-day trade. The company is schedule to announce September 30, 2016 quarter results on October 26, 2016. In past two-months, the stock outperformed the market by surging 56%, against flat in the benchmark index.

CRISIL, the rating agency, in report dated August 17 said, Raymond business risk profile is expected to gradually strengthen over the medium term, supported by an established market position in the suiting business, healthy growth in the apparel business, diversified product portfolio, and focus on enhancing operating efficiencies.