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

NEW DELHI: Singer India’s shares are up 52 percent in four sessions, with much of the gains coming on the counter after late ace investor Rakesh Jhunjhunwala’s Rare Investments acquired 8 percent of the company.

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

The scrip rose 20 per cent to peak at Rs 82.95 on BSE. At that price, the scrip is up 51.92 per cent from the 10th August close of Rs.54.60. Rare Investments bought 42.5 lakh shares in a bulk deal at Rs 53.50 apiece, out of 1.2 billion shares sold by Singer promoter Retail Holdings India BV in trading on Tuesday.

After the sale, Retail Holdings India BV still holds 37 percent of the shares in the company.

Regarding bulk deals, Rajeev Bajaj, CEO & MD, Singer India said his company was part of Singer Asia until December 2021. Singer Asia held a 58 percent stake until December 2021, which was sold to a new group of investors from Greece and the UK. The new group sold 22 percent of its stake to Indian investors including Rare on Tuesday, he told ET NOW.

“The idea was that they wanted to have a local stake from local investors and grow the company and work out the plan together,” Bajaj said, adding that Retail Holdings (India) BV still owns 37 percent of the shares in the company and this intended to have control.

Singer India, a small company, operates on two lines of business, the core business of sewing machines, which accounts for 68 percent of sales, and home appliances.

“Since sewing machines had limited growth, we got into home appliances after we exited BFR in 2013. Household appliances now encompass a range of devices from small to large, but the focus now is to define the categories that we want to focus on in the future and only grow in those categories,” Bajaj said.

Going forward, Bajaj said growth would be higher in sewing machines as his company used to sell only household sewing machines but is now entering the growing segment of industrial sewing machines. The apparel industry is expected to grow faster as the PLI program for the industry is considered,” he said.

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