Shares of Singer India rose 19% to Rs 82.50 in intraday trade on the BSE on Wednesday amid heavy trading volume. Shares of the appliance company have surged 43% over the past two sessions after its promoters sold a 22% stake in the company in open market trading.

On Tuesday, August 16, 2022, Singer India’s promoter, Retail Holdings (India) B.V, sold 12 million equity shares, representing a 22.34% stake in the company, for Rs 64.25 crore. Exchange data showed that the promoters sold shares in BSE for Rs 53.54 in a block trade.

Retail Holdings (India) B.V’s stake in Singer India dropped from 57.65% to 35.31% following the deal, the company said.

Rare Investments, the investment arm of the late Rakesh Jhunjhunwala and his wife Rekha, bought 4.25 million shares, or 7.91%, in Singer India on Tuesday, according to block trade data. Additionally, in Rare Investments, PGA Securities bought 2.45 million shares, while the data showed that Gauri Tandon and Veena Kumari Tandon bought 7 lakh shares of the company in block trades.

Shares of Singer India were up 19% at Rs 82.30 at 10.41 am, while the benchmark index was up 0.5%. Over-the-counter volume more than doubled, with 4.13 million shares changing hands, compared with an average of 1.96 million shares on the BSE over the past two weeks.

Shares of Singer India have risen 94% in the last two days of gains, while the S&P BSE Sensex rose 12% last month.
Singer India is a long-time leader in the country’s sewing machine industry with the well-known “Singer” and “Merritt” brands. Today, Singer India also sells many categories of home appliances with over 10,000 points of sale, including showrooms, an extensive wholesale distribution network and a very strong pan-India after-sales service network.

Singer India sold vacant leasehold land and buildings in Jammu for Rs 10.4 crore and completed the handover of the land lease on July 13, 2022.

On the business outlook, Rajeev Bajaj, MD of Singer India, said lower commodity prices are expected to impact sales and profit margins in the coming months positively. He added that while the company remains cautious given the lingering possibility of a recession, the outlook remains positive, and the company is well-positioned for any economic turmoil.