Singer India shares: Singer India rallies 52% in 4 sessions. What the CEO says about Rare’s investment

NEW DELHI: Singer India shares rose 52% in four sessions, with the majority of gains on the meter coming after late investor Rakesh Jhunjhunwala’s Rare Investments acquired 8% of the company.

Rare bought the stake as Retail Holdings NV reduced its stake in the New Delhi-based maker of sewing machines, washing machines and other products.

The certificate jumped 20% to reach a high of Rs 82.95 on BSE. At this price, the certificate is up 51.92% from the August 10 close of Rs 54.60. Rare Investments bought 42.5 lakh of shares in a bundled deal at Rs 53.50 apiece, out of 1.2 crore of shares sold by promoter Singer Retail Holdings India BV in Tuesday’s deal .

After the sale, Retail Holdings India BV still holds a 37% stake in the company.

Regarding wholesale transactions, Rajeev Bajaj, CEO and Managing Director of Singer India, said that his company was part of Singer Asia until December 2021. Singer Asia held a 58% stake until December 2021, which was sold to a new group of investors from Greece and Great Britain. The new group on Tuesday sold 22% of its stake to Indian investors, including Rare, he told ET NOW.

“The idea was that they wanted to have local participation from local investors and grow the business and come up with the plan together,” Bajaj said, adding that Retail Holdings (India) BV still owns 37% of the shares in the company. business and intends to have control.

Singer India, a small business, deals in two businesses, the core business of sewing machines, which accounts for 68% of revenue, and home appliances.

“Because sewing machines had limited growth, we entered home appliances after our exit from BFR in 2013. Home appliances now includes a range of appliances from small to large appliances, but the focus would be now to define the categories we want to focus on in the future and grow only in those categories,” Bajaj said.

Going forward, Bajaj said the growth of sewing machines would be higher as his company previously only sold household sewing machines but is now entering industrial sewing machines, which is a growing segment. The garment industry is expected to grow faster when the PLI program is considered for the industry,” he said.

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