Raymond to demerge core lifestyle business, to set up new Raymond Lifestyle Ltd

Ritika Pathak

, Business, Special

Recently, textile giant Raymond announced to demerge its core lifestyle business and subsequently the listing of a new entity.

The step would create two new companies – the existing one focusing on real estate, land bank, engineering of auto parts and FMCG business, and the new company dealing in core branded textile, apparels and overall garment businesses.

The company in a statement said that “every shareholder of Raymond will be issued shares of the new company in the ratio of 1:1,” which means that the listing would be done under mirror shareholding structure.

Moreover, the Mumbai based conglomerate also added that in a recent preferential share allotment to JK Investo Trade (India) Ltd, it has raised around Rs350 crore. JK Investo is a part of the promoter group firm of Raymond group.

Chairman and Managing Director of Raymond Group, Gautam Singhania said, “One thing I have consistently said in the last three years is we want to create shareholder value. First thing we need to do is monetize some assets. The question I have been consistently asked is what are we doing with the land. We will do whatever we can to monetize the land.”

Raymond in total, owns a land bank of Rs 125 acres in Thane and has been looking for monetization of its land assets either by selling it or by developing into phases.

Last month, the company announced that it is selling its 20-acre land in Thane to Virtuous Retail South Asia (VRSA) – Xander backed company for Rs 700 crore.

Last year, the company announced its entry into the realty sector with a plan of developing 3000 unit-residential projects on a 20-acre land.

The demerger is expected to result in more focussed strategy and approach aimed to achieve higher sustained growth of the company.

 

 

 

 

 

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