10-Jul-2024
2 mins read
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The board of Raymond has set July 11 as the record date for its demerger. This means that today is the last day to purchase shares to qualify for the new entity, Raymond Lifestyles, which will be demerged and listed.
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Trading and Listing Information
After the record date, Raymond will trade ex-Raymond Lifestyles, with the new entity expected to be listed by August or September this year. If you remember, when Manyavar was a Rs 22,000 crore company sometime back, Raymond used to be at Rs 3,000 crore, and this is value investing.
Restructuring Details
Raymond is now going to demerge the lifestyle business into Raymond Lifestyles. Ray Global Consumer Trading would also be amalgamated into Raymond Lifestyles as the group cleaning up exercise goes through. For every five shares held by shareholders of Raymond, four shares of Raymond Lifestyle would be issued while shareholders of Ray Global Consumer Trading get two shares of Raymond Lifestyles for every share held by them.
Strategic Growth Ahead
"Management of Raymond has mentioned that once its businesses achieve a certain scale, they would be structured as pure plays. The engineering division could be the next value-unlocking opportunity following the acquisition of Maini Precision Products Ltd (MPPL) for Rs 6.82 bn that would be demerged into two subsidiaries – one to house MPPL's aerospace & defence business and the rest to be consolidated into one entity," a report from InCred Equities said.
Conclusion
Stay tuned to Bigul for more updates on such news as Raymond further restructures and unlocks new growth opportunities. This might be, therefore, considered a demerger that will open up new vistas for success both for the company and its shareholders.
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