Bombay Dyeing surges over 17 percent on stake-sale report

Reuters Market Eye - Shares of Bombay Dyeing and Manufacturing Co rise as much as 17.7 percent on a local media report that at least three private equity funds are in talks to buy up to a 24 percent stake in the company.

WL Ross, Sequoia Capital and JC Flowers are in talks with Bombay Dyeing to invest at least 5 billion rupees, according to a Press Trust of India (PTI) report carried by the Business Standard newspaper on Monday.

"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 exchange on Monday.

 

The private equity funds were not immediately reachable for comments.

Shares of Bombay Dyeing gain 12.8 percent as of 2:50 p.m. They earlier hit a high of 62.80 rupees.

(Reporting by Indulal P)