Raymond stock trades ex-lifestyle biz; gains 4% from discovered price

Shares of Raymond Lifestyle to list within a month; Raymond shareholders to be allotted 4 equity shares of Raymond Lifestyle for every 5 shares held in Raymond as of July 11 record date.

Raymond stock price today, July 11: Shares of Raymond were up 4.5 per cent to Rs 2,037 on the BSE in Thursday’s intra-day trade in an otherwise weak market. The stock today turned ex-date for lifestyle business. At 11:05 am; Raymond was trading 3.7 per cent higher at Rs 2,022 compared to its post-demerger discovery price. In comparison, the Sensex was down 0.33 per cent.

The stock started trading at Rs 1,950 on the BSE; after a special pre-open price discovery session between 09:45 - 10 AM today. 

Raymond had fixed July 11, 2024 as record date for the purpose of demerger of its lifestyle business undertaking into Raymond Lifestyle (formerly:  Raymond Consumer Care) and for determining the entitlement of the shareholders of the company. Four (4) equity shares of Raymond Lifestyle of Rs 2 each fully paid-up shall be issued and allotted to the shareholders of Raymond holding every five (5) equity shares of Rs 10  each fully paid up as of record date. 

 

Shares of Raymond Lifestyle are expected to be listed within a month. READ MORE

Raymond company demerger

The company undertook a corporate action of demerging the Lifestyle business from Raymond, a move to unlock value for its shareholders. Post this demerger there will be two listed companies Raymond Lifestyle and Raymond. The Realty business and Engineering business will be under Raymond.

“The Group sold its fast moving consumer goods (FMCG) business and has now identified the core three businesses of Lifestyle, Real Estate and Engineering as future growth pillars. With the demerger of the Lifestyle business into a separate entity, the parent company, Raymond, will now have Real Estate and Engineering businesses. This corporate action, with the intent to further increase shareholder value, brings us at the cusp of a new beginning,” Raymond said in its FY24 annual report.

Meanwhile, Raymond on July 4, 2024 said it will demerge the real estate business to unlock the value for shareholders and harness growth potential in the Indian property market.

Raymond real estate business

In a regulatory filing, Raymond announced the vertical demerger of its Real Estate Business into its wholly-owned subsidiary, Raymond Realty (RRL). Upon completion of this demerger, Raymond and RRL will operate as separate listed entities within the Raymond Group post all statutory approvals.

The new entity will seek automatic listing on stock exchanges and according to the scheme of arrangement, each Raymond shareholder will receive 1 share of RRL for every 1 share held in Raymond, the company said.

The demerger aligns with Raymond Group's stated objectives of simplifying its corporate structure and enhancing shareholder value for operational and structural benefits.

Raymond's business segments

Raymond is a leading Indian Textile, Lifestyle and Branded Apparel company. The company has its wide network of operations in local as well foreign markets. The company sells its product through multiple channels including wholesale, franchisee, retail etc. The company is also engaged in the business of real estate constructions/real estate development.

As India continues to be a preferred sourcing destination, the China plus one strategy is playing its part. The management said Raymond is expanding its garmenting capacity by a third of its current levels. With this expansion of the capacity once fully commissioned will make Raymond the third largest suit maker in the world.

Raymond FY24 annual report

Raymond in its FY24 annual report said the company anticipates maintaining a profitable growth trajectory. In the domestic market, consumer sentiment is expected to remain positive, driven by approach of wedding and festive seasons and surging demand for formal and daily wear categories. The company aims to introduce new initiatives to bolster growth.

In the branded apparel segment, Raymond aims to diversify its product range through demerging its lifestyle business, facilitating new launches in its core portfolio, emphasizing casualization and expanding the Ethnix wear category.

Raymond Realty

Raymond Realty has around 100 acres of land in Thane with nearly 11.4 mn sq ft RERA approved carpet area of which about 40 acres is currently under development. There are five ongoing projects worth Rs 9,000 crore on its Thane land, with an additional potential to generate more than Rs 16,000 crore, making a total potential revenue of over Rs 25,000 crore from this land bank.

Upon acquisition of Maini Precision Products Limited (MPPL) business, the Raymond Group aims to venture into sunrise sectors of Aerospace, Defense and electric vehicle (EV) Components. On the other hand, the real estate market is poised for sustaining its growth momentum, buoyed by factors such as increased affordability, supportive government policies, a revival in the consumption cycle and an increasing demand to upgrade homes, Raymond said.