Shares of Singer India have rallied 19 per cent to Rs 82.50 on the BSE in Wednesday’s intra-day trade on the back of heavy volumes. The stock of the household appliances company has zoomed 43 per cent in the past two trading sessions after its promoter offloaded 22 per cent stake in the company via open market deals.
On Tuesday, August 16, 2022, Retail Holdings (India) B.V, the promoter of Singer India sold 12 million equity shares representing 22.34 per cent stake in the company for Rs 64.25 crore. The promoter offloaded shares at price of Rs 53.54 on the BSE via block deals, the exchange data shows.
Post transaction, Retail Holdings (India) B.V holding in Singer India reduced to 35.31 per cent from 57.65 per cent, the company said.
Rare Investments, the investment arm of late Rakesh Jhunjhunwala and wife Rekha, acquired 4.25 million equity shares or 7.91 per cent stake in Singer India on Tuesday, showed block deal data. Besides, Rare Investments, PGA Securities bought 2.45 million shares, while, Gauri Tandon and Veena Kumari Tandon acquired 700,000 shares of the company via block deals, data shows.
At 10:41 am, Singer India traded 19 per cent higher at Rs 82.30, as against 0.5 per cent rise in the benchmark index. The trading volumes at the counter more-than-doubled with 4.13 million shares changing hands as against an average 1.96 million shares traded in the past two weeks on the BSE.
With the past two-day rally, the stock of Singer India has appreciated by 94 per cent, as compared to 12 per cent surge in the S&P BSE Sensex in the last one month.
Singer India is a long-standing leader in the sewing machines industry in the country under the renowned “SINGER”and “MERRITT” brands. Today Singer India also sells many categories of home appliances with over 10,000 sales points including showrooms, a wide wholesale distribution network and a very strong after sales service network Pan India.
Singer India has sold its idle leasehold land and building located in Jammu for Rs 10.4 crore and the surrender of lease hold rights of land formalities were completed on July 13, 2022.
On the business outlook, Rajeev Bajaj, Managing Director of Singer India said the drop in commodity prices is expected to have a positive impact on sales and margins in the coming months. Whilst the company remains cautions in light of the continued possibility of recessionary conditions, the outlook remains positive and the company is in a strong position to weather any economic turbulence, he added.