Raymond Ltd., an Indian branded fabric and apparel store, announced on April 27 that it will be demerging its lifestyle business to Raymond Consumer Care to form a listed organization with an exclusive concentration on the B2C lifestyle business.
The enterprise comprises a garment company and a B2B shirting subsidiary, in addition to a suiting business that operates manufacturing facilities, B2C B2C shirting, branded clothing, and B2C B2C shirting.
The Raymond firm, which is presently publicly traded, will focus mostly on the real estate industry but will also have stakes in the engineering and denim industries.
Raymond Ltd. owns 47.66 percent of Raymond Consumer Care, while promoter groups have 49.68 percent of the company and the public has 2.66 percent of the company’s shares.
“This corporate action has been initiated with the sale of the FMCG business under RCCL Raymond Consumer Care to Godrej Consumer Products for a consideration of Rs 2,825 crore,” the firm said in a filing with the exchange.
Following the completion of this demerger, Raymond Limited, the primary parent company of Raymond Consumer Care, will no longer have any outstanding debt, which, according to the statement, will make it possible for the firm to become an independently listed organization.
“At the promoter level, we continue to remain committed, and the efforts have been demonstrated by infusing funds generated from the monetization of assets,” said Gautam Hari Singhania, Chairman, and Managing Director of Raymond Limited. “The funds have been demonstrated by infusing funds generated from monetization of assets.”
From this point forward, each shareholder of Raymond Limited will, upon the listing of the latter company, be entitled to receive 4 shares in Raymond Consumer Care for every 5 shares held in Raymond Limited. According to the corporation, the share exchange ratio was advised by independent valuers KPMG and BDO in addition to a fairness assessment supplied by ICICI Securities.
