 "Raymond's board approves JK Files & Engineering's Rs 800-crore IPO")
Diversified group Raymond Ltd on Wednesday said its board has approved the listing of its subsidiary JK Files & Engineering Ltd (JKFEL), a company that is in the business of auto parts.
The initial public offering (IPO) will also comprise an offer-for-sale (OFS) of Rs 800 crore, said the country's leading fabric and apparel manufacturer Raymond in a statement.
Moreover, the IPO will not have any fresh issuance of shares and will be undertaken subject to requisite regulatory approvals and market conditions, it added.
"We hereby inform that the board of directors of JKFEL, a wholly-owned material subsidiary of Raymond Ltd at its meeting held on November 30, 2021, approved an IPO comprising of an OFS for Rs 800 crore, subject to such variation as permitted under applicable law," it said.
It further said that in this regard, the company's board of directors, at its meeting held on Wednesday, approved the OFS for Rs 800 crore, subject to such variation as permitted under applicable law in the IPO through book building process which will help de-leverage Raymond Ltd.
The company's shareholding in JKFEL will stand reduced by such number of shares as may be tendered for sale in the OFS.
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"However, post-IPO, JKFEL shall continue to remain a material subsidiary of the company," it said.
Raymond further said it will keep the stock exchanges informed on any developments in this regard.
Earlier in September, the Gautam Hari Singhania-led group had informed about the consolidation of its auto and engineering businesses, as part of a restructuring exercise.
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