Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now

You can switch off notifications anytime using browser settings.
The Economic Times

Raymond surges 20% on plans to demerge core lifestyle business

Textile-focused conglomerate Raymond on Friday surged after the company announced the demerger of its core lifestyle business and also its listing as a separate entity.

The move will create two separate companies — the new one housing the core branded textile, branded apparel and garmenting businesses and the existing housing its new real estate project, land bank, engineering businesses of auto components and FMCG businesses among others.

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

In another development, Raymond also announced the allotment of equity shares and compulsorily convertible preference shares (CCPS) to JKIT, an associate company against the infusion of net proceeds of JKIT land sale that was announced in October. The company last month said it sold 20-acres of land to global investment firm Xander-backed Virtuous Retail South Asia (VRSA) for Rs 700 crore.

The company will raise Rs 225 crore via the allotment of 3.3 million equity shares while Rs 125 crore will be raised via the allotment of 1.8 million CCPS. Both will be issued at Rs 674 per share. A total of Rs 350 crores will be used to repay Raymond’s debt.

The shares of the company closed 19.99 per cent higher at Rs 808.40 on BSE.

Stay on top of business news with The Economic Times App. Download it Now!