3 hrs ago
Raymond Shares Surge 7% on Fundraising and Defence Triggers
Raymond’s stock price rose sharply during Monday’s trading session.
The company is planning to raise money by issuing special securities to an investment fund.
Shareholders are expected to discuss and possibly approve this plan at a meeting on October 2.
Investors also reacted positively to a defence-related contract announced earlier in September.
The contract is expected to bring in about ₹33 crore each year.
Raymond shares had already risen a lot in recent weeks and months.
The stock has gained about 610% over five years, according to the article.
Analysts said the fundraising plan, defence contract, and heavy trading activity helped drive the latest rise.
Raymond Limited shares rose 6.94% to ₹1,045.90 on the BSE during Monday trading.
The rally came ahead of the company’s October 2 Extraordinary General Meeting.
Shareholders may approve a preferential allotment of 33.28 lakh convertible warrants to Minerva Ventures Fund at ₹645 each.
The proposed issue could raise up to ₹214.71 crore for Raymond Limited.
A defence contract covering more than 300 part types and strong recent trading volumes also boosted investor interest.
- Who
- Raymond Limited, its shareholders, Minerva Ventures Fund, and investors trading Raymond shares.
- What
- Raymond shares rose nearly 7% as investors responded to a proposed preferential issue, a defence contract, and strong trading activity.
- Where
- Raymond shares traded on the BSE.
- When
- Monday, September 21; the Extraordinary General Meeting is scheduled for Saturday, October 2.
- Why
- Investor interest increased because of the proposed ₹214.71 crore fundraising, a defence contract, and substantial recent buying and trading volumes.
Key facts
- Monday share price
- ₹1,045.90, up 6.94% on the BSE at 11:37 a.m.
- Intraday range
- ₹969.40 to ₹1,055.85
- Proposed warrants
- 33.28 lakh convertible warrants
- Issue price
- ₹645 per warrant
- Potential fundraising
- Up to ₹214.71 crore
- Defence contract
- About ₹33 crore annually for more than 300 part types
- Five-year return
- Nearly 610%
Quotes
Harshal Dasani
Business Head at INVasset PMS
“The rally has three visible triggers and one that does not belong to it. The board approved 33.29 lakh convertible warrants to Minerva Ventures Fund at ₹645 on September 8, raising up to ₹214.71 crore, and the stock rose 33 percent in the four sessions after; on September 11 it jumped 20 percent on volume of 11.72 million shares, about 17.6 percent of the company's entire equity changing hands in one day, with delivery volume 169 percent above its five-day average.”
livemint.com
“The September 1 aerospace contract, roughly ₹33 crore a year for over 300 part types from an Indian defence major, is small in rupees but validates the capability.”
livemint.com
Sources
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