Raymond approves demerger of real estate business, to list on exchanges separately
Raymond Ltd has approved the demerger of its real estate business into Raymond Realty Ltd following the recent composite scheme of arrangement and restructuring involving the demerger of its lifestyle business and the amalgamation of its consumer trading arm, paving way for a more focused and streamlined corporate structure.
Ltd has approved the of its real estate business into Ltd following the recent composite scheme of arrangement and restructuring involving the demerger of its lifestyle business and the amalgamation of its consumer trading arm, paving way for a more focused and streamlined corporate structure.As per the demerger terms, shareholders of Raymond Ltd will receive one equity share of Raymond Realty for every share of Raymond. The demerged entity will be listed on the Bombay Stock and National Stock Exchange separately, the company said in a regulatory filing.
The move is aimed at creating stakeholder value by attracting a distinct investor base and allowing investors to allocate their portfolios into separate entities, each focused on distinct business areas. The demerger will enable independent capital allocation and balance sheet management tailored to the unique needs of each business segment.
In June, the National Company Law Tribunal (NCLT) approved Raymond Ltd's comprehensive restructuring plan, which includes the demerger of its lifestyle business and the amalgamation of Ray Global Consumer Trading into Raymond Lifestyle. This restructuring aims to create a more focused and streamlined corporate structure, unlocking the potential value of Raymond’s distinct business verticals.
Raymond Ltd, known for its operations in textiles, branded apparel, and real estate development, is set to achieve zero net debt for both lifestyle and non-lifestyle businesses post-restructuring. This strategic move is anticipated to simplify operations, enhance management efficiency, and provide a clear strategic direction for each business unit.
The primary objective of this restructuring is to unlock the potential value of Raymond’s distinct business verticals. The textile and lifestyle segments have grown significantly, warranting independent management and operations. The separation is expected to enable focused management of each business vertical, enhance operational synergies, and streamline the corporate structure.
Source: Stocks-Markets-Economic Times
