Gautam Singhania, chairman of Raymond, on Friday said the National Company Law Tribunal (NCLT) has approved Raymond’s composite scheme of arrangement and restructuring involving the demerger of its lifestyle business and the amalgamation of its consumer trading arm, paving way for a more focused and streamlined corporate structure.
The approval is a crucial step towards establishing a more refined and efficient corporate framework for the Raymond group. The development would mean segregation of Raymond Ltd and Raymond Lifestyle, along with the incorporation of Ray Global Consumer Trading. As part of the restructuring process, shareholders can anticipate receiving equity shares determined by the swap ratio.
"We have achieved a significant milestone in Raymond Group’s journey as the National Company Law Tribunal (NCLT) approves our strategic demerger and amalgamation, marking a new chapter of growth & opportunity for us.. This means a fresh, focused corporate structure is on the horizon," Singhania posted on X.
After the restructuring, shareholders of Raymond Ltd will receive four equity shares of Raymond Lifestyle for every five shares held in Raymond Ltd.
Besides, Ray Global Consumer Trading shareholders will get 2 equity shares of Raymond Lifestyle for each share held in Ray Global Consumer Trading. Equity shares of Raymond Lifestyle will be listed on the stock exchanges shortly.
The company in its petition to the NCLT Mumbai bench said that its primary objective is to unlock the potential value of Raymond’s distinct business verticals. The petitions emphasized the notable expansion of the textile and lifestyle segments, indicating the need for separate management and operations. The division aims to facilitate dedicated oversight of each business vertical, optimize operational connections, and simplify the corporate framework.
Earlier this week it was reported that Raymond Lifestyle (RLL), which is worth Rs 9,286-crore after the demerger has appointed some top executives of India Inc as independent directors ahead of a possible listing next month. Former HCL CEO Vineet Nayar, GC Chaturvedi, former chairman of ICICI, Anisha Motwani, board member of Abbott, and Raymond director Dinesh Lal were the new appointed independent directors, a report in the Economic Times said.
Gautam Singhania, chairman of Raymond, is likely to take charge as Raymond Lifestyle's managing director. Sunil Kataria, CEO, Raymond Lifestyle, will also be part of the newly constituted board.