Raymond Limited will now be a pure play Realty Business listed entity along with investments in Engineering and Denim businesses. With this transaction, Promoter shall have invested around Rs 1,400 Crores through asset monetization reflecting commitment towards Raymond Group
Raymond Limited and Raymond Lifestyle Business will be the two listed entities of the group with significant liquidity surplus available for growth. Consequent to demerger, shareholders of Raymond Limited will get shares in RCCL based on swap ratio
Raymond Limited demerges its Lifestyle Business to Raymond Consumer Care Ltd (RCCL) to create a listed entity with pure play B2C focused Lifestyle Business and enables it to be Net Debt free.
Raymond Consumer Care Ltd (RCCL) sells its FMCG business to Godrej Consumer Products Ltd (GCPL) for Rs 2,825 Crores. RCCL is majorly owned by Promoter Company and Raymond Limited, and consequent upon sale of FMCG business, the promoter will deploy the entire proceeds of this transaction into the Lifestyle business
This corporate action has been initiated with the sale of its FMCG business under RCCL to GCPL for a consideration of Rs 2,825 Crs. The move to demerge the Lifestyle Business from Raymond Limited will enable the business to be net debt free and will become an independently listed entity. Post demerger of the Lifestyle Business, Raymond Ltd would primarily be a listed real estate company with investments in engineering and denim business.
This will facilitate focused investor opportunities and better access to capital with a clear strategy and specialization for sustainable growth and profitability for both Lifestyle and Real Estate business.
Commenting on the development, Gautam Hari Singhania, Chairman and Managing Director Raymond Limited said, “In line with our commitment for creating shareholder value, we have taken an affirmative action by demerging our Lifestyle Business that will be a separate listed entity with zero net debt. At Raymond Group, the Realty business will also be the listed entity through Raymond Limited. At promoter level, we continue to remain committed, and the efforts have been demonstrated by infusing funds generated from monetization of assets.”
Raymond Group, that has a FMCG business under RCCL has sold the same along with trademarks Park Avenue Deo, KS Deo, Kamasutra & Premium to GCPL through a slump sale. RCCL will retain its condom manufacturing facility and will continue to do contract manufacturing in Aurangabad, Maharashtra for both domestic and international markets.
Going forward, the Lifestyle Business that now moves under RCCL will be listed and each shareholder of Raymond Limited will get 4 shares of RCCL for every 5 shares held based on the swap ratio suggested by independent valuers KPMG and BDO along with a fairness opinion issued by ICICI Securities Ltd. and approved by Board of Directors of Raymond Limited.
