After Trading In The Former Lifestyle Company, Raymond's Stock Increases 4%.

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

Price of Raymond’s shares as of July 11:In Thursday’s intraday session, Raymond’s shares saw a 4.5% increase to Rs 2,037 on the BSE amid an otherwise sluggish market. Today, the shares for the lifestyle business went ex-date. Raymond was up 3.7% at Rs 2,022 as of 11:05 a.m. in relation to its post-demerger discovery price. By contrast, the Sensex saw a 0.33 percent decline.
The BSE saw the stock begin trading at Rs 1,950 following a special pre-open price discovery session that took place today between 9:45 and 10 AM.
In order to demerger its lifestyle business venture into Raymond Lifestyle (formerly: Raymond Consumer Care) and to ascertain the entitlement of the company’s shareholders, Raymond set July 11, 2024, as the record date.

The shareholders of Raymond owning each of the five (5) equity shares of Rs 10 each, fully paid up as of the record date, will each receive four (4) fully paid-up equity shares of Raymond Lifestyle.

Raymond Company’s Demerger

In an effort to maximise value for its investors, the company decided to demerge Raymond’s Lifestyle division. Following this demerger, Raymond Lifestyle and Raymond will be two public companies. Raymond will be in charge of the engineering and real estate businesses.
“After selling its fast-moving consumer goods (FMCG) division, the Group has determined that its core industries of engineering, real estate, and lifestyle will serve as its future growth pillars. The parent firm, Raymond, will now own operations in real estate and engineering following the demerger of the Lifestyle division into a distinct corporation. We are on the verge of a fresh beginning thanks to this corporate initiative, which aims to further boost shareholder value, Raymond stated in its FY24 annual report. On July 4, 2024, Raymond announced that the real estate business will be demerged in order to maximise shareholder value and capitalise on the potential for growth in the Indian real estate industry.

Raymond’s Real Estate Company

Raymond announced the vertical demerger of its Real Estate Business into Raymond Realty (RRL), a wholly-owned subsidiary, in a regulatory filing. Following the completion of this demerger and subject to all necessary legislative approvals, Raymond and RRL will function as distinct listed companies within the Raymond Group.

According to the arrangement, each shareholder of Raymond would get one share of RRL for every one share held in Raymond. The new firm will pursue automatic listing on stock exchanges, the company added.

The demerger is in line with the declared goals of Raymond Group, which include streamlining its corporate structure and increasing shareholder value for both structural and operational advantages.

The Business Divisions Of Raymond

One of the top textile, lifestyle, and branded apparel companies in India is Raymond. The business operates a broad network in both domestic and international markets. The business uses a variety of channels to sell its goods, such as retail, franchisee, wholesale, and so on. The company also works in the real estate development and construction industry.

The China plus one strategy is helping, as India remains a popular place for sourcing. Raymond is increasing its clothing capacity by a third of its present levels, according to the management.

Raymond’s FY24 Annual Report

The company expects to continue on a profitable growth track, according to Raymond’s FY24 annual report. The impending wedding and celebration seasons, along with the growing demand for formal and everyday wear categories, are projected to maintain the good consumer sentiment in the home market. To support expansion, the organisation plans to launch new initiatives.
By demerging its lifestyle business, enabling fresh launches in its core portfolio, stressing casualization, and growing the Ethnix wear category, Raymond hopes to broaden its product offering in the branded apparel market. After acquiring the company of Maini Precision Products Limited (MPPL), the Raymond Group intends to enter the emerging markets of electric vehicle (EV) components, aerospace, and defence. However, Raymond noted that the real estate market is well-positioned to maintain its growing momentum due to a number of factors, including rising demand for home upgrades, more affordable housing, encouraging government policies, and a resurgence of the consumer cycle.