Shares of Raymond surged 6% to its day’s high of Rs 2,675 on BSE as the NCLT approved the demerger of the company’s lifestyle business
Shares of Raymond surged 6 per cent on Monday to its day’s high of Rs 2,675 on BSE as the National Company Law Tribunal (NCLT) approved the demerger of the company’s lifestyle business and the amalgamation of its consumer trading arm.
Read More: Stock Market Updates: Sensex Down 400 Points, Nifty Below 23,400; Delta Corp Falls 7%
The NCLT approval facilitates the separation of demerging entity Raymond Ltd and Raymond Lifestyle, which will be the transferee company, with Ray Global Consumer Trading also being integrated into the new structure.
Once the restructuring scheme becomes effective, shareholders of Raymond Ltd will receive four equity shares of Raymond Lifestyle for every five shares held in Raymond Ltd. Shareholders of Ray Global Consumer Trading will receive two equity shares of Raymond Lifestyle for each share held in Ray Global Consumer Trading. Equity shares of Raymond Lifestyle will be listed on the stock exchanges.
Read More: Falcon Technoprojects IPO allotment to be finalised today; latest GMP, 4 steps to check status
Advocate Hemant Sethi and Devanshi Sethi of Hemant Sethi & Co, while appearing for all the companies argued that each of these business verticals are significantly large and mature and have a distinct attractiveness to divergent sets of investors, strategic partners, and other stakeholders.
“Each business will be able to target and attract new investors with specific knowledge, expertise and risk appetite corresponding to their own businesses,” argued the lawyers for the company. “Thus, each business will have its own set of like-minded investors, thereby providing the necessary funding impetus to the long-term growth strategies of each business.”
Read More: Bharti Airtel In Talks With Vodafone To Buy Additional 3% Stake In Indus Towers: Reports
According to the companies’ petition to the NCLT Mumbai bench, the primary objective of the 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.
DISCLAIMER:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
