Raymond Ltd., an Indian maker of clothing and fabrics, rose the most in 11 months in Mumbai trading after a report that the buyout unit of LVMH Moet Hennessy Louis Vuitton SA may invest in its garment unit.
The shares gained as much as 11 percent, the biggest rise on an intraday basis since April 27, and were trading 3 percent higher at 361.5 rupees as of 11:55 a.m. in Mumbai trading. The benchmark BSE India Sensitive Index fell 1 percent.
L Capital Asia, LVMH’s buyout arm, may invest $150 million for as much as 20 percent of the Raymond unit, the Economic Times reported, without saying where it got the information.
There is “no such proposal before the board of directors of the company,” Mumbai-based Raymond said in statement to the Bombay Stock Exchange.
“If they want to make an international expansion, then it could possibly make sense,” Abhishek Ranganathan, an analyst with MF Global Sify Securities Pvt. in Mumbai, said in a telephone interview, referring to Raymond. “Why they want to raise money is not very clear.”
Ketki Kiran Paranjpe, vice president, L Capital Mumbai Advisory Services Pvt., declined to comment on the Economic Times report. Shreyas Joshi, president of apparel at Raymond wasn’t immediately available at his office to comment.
Raymond’s shares have gained 16 percent this year, compared with a 13 percent increase in the benchmark index.