New Delhi, Nov 7 (IANS) Raymond on Thursday said it would hive off and list its core lifestyle business as a separate entity.
It plans to list the new entity through the “mirror shareholding structure” whereby shareholders of Raymond will be issed shares of new company in the 1:1 ratio, Raymond said in regulatory filing.
“In continuation of its transformational journey of value creation, Raymond today (Thursday) announced demerger of its core lifestyle business into a separate entity that will be listed through mirror shareholding structure. Every shareholder of Raymond will be issued the shares of the new company in the ratio of 1:1. The move will create a clear demarcation of lifestyle & other businesses leading to the simplification of the group structure,” it said.
After the demerger, the existing company would retain the real estate, B2B (business-to-business) shirting and engineering businesses along with the joint ventures and associate companies.
Currently, Raymond promoters hold 43.83 per cent share and the public 56.17 per cent, and the same structure would be retained in the new lifestyle entity.
The company said the macroeconomic indicators were favourable for its lifestyle business and there was a growing preference for quality branded products.
Commenting on the development, Gautam Hari Singhania, Chairman and Managing Director, Raymond, said: “As we continue to build capacities for enhanced performance and delivery across verticals, demerging the core lifestyle business is an affirmative step towards that direction and this will also simplify the group structure. We remain resolute to take right steps to enhance value creation for our shareholders.”
In another development, Raymond has decided to allot of equity shares and ‘compulsorily convertible preference shares’ (CCPS) to JKIT, an associate company, against the infusion of Rs 350 crore net proceeds of JKIT land sale.