Issuing a clarification on media reports, Raymond Group said that the company has already informed the exchanges that Raymond Limited has demerged its lifestyle business to Raymond Lifestyle Limited (RLL) through a Composite Scheme of Arrangement and as per the said Scheme shares of RLL are expected to be listed soon.
Further, it had, earlier on July 4, 2024, also intimated to the stock exchanges that the bord of directors have approved the Scheme of Arrangement for demerger of Realty business to Raymond Realty Limited (RRL) and the demerged entity RRL will be listed on stock exchanges post obtaining necessary statutory/ regulatory approvals. The company has already filed an application for grant of NOC with both the stock exchanges.
“Post completion of all formalities for both the Scheme of Arrangement, there will be three listed entities in the Raymond Group i.e. Raymond Limited, Raymond Lifestyle Limited and Raymond Realty Limited,” it said in a regulatory filing.
Further, talking about the increase or spurt of shares listed on the stock exchanges, Raymond said that it is “market driven” and that the company has no control over the same.
Meanwhile, brokerage firms said that developments at Raymond are anticipated to generate shareholder value for each business through effective management, cash optimization, and cost optimization.
According to Motilal Oswal Financial Services (MOFSL), RLL is guiding for 12-15 per cent revenue growth in the lifestyle business and expects to double its EBITDA to +Rs 20 billion by FY28. The growth, it added, will be led by a) the doubling of its EBO network, b) capitalizing on Bangladesh +1 and China +1 opportunity, c) the extension of new categories such as innerwear and sleepwear, and d) wedding wear led growth. “Raymond has been demonstrating positive actions in the form of selling the FMCG business, de-merging the Lifestyle Business, shaping the Real Estate Business and demerging it, and establishing an engineering unit after the Maini Precision (MPPL) acquisition,” analysts said in a report by MOFSL.
Meanwhile, a report by InCred Equities said that management guidance entailed sales growth of 12-15 per cent and doubling the EBITDA by FY28F.
From: financialexpress
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