raymond shares: Raymond shares trade ex-lifestyle business, stock jumps over 4%

    Shares of Raymond started trading ex-lifestyle business on Thursday, as July 11 was declared the record date by the company. The stock rose nearly 5% to the day’s high of Rs 2,037 on the BSE.The value of Raymond’s Lifestyle business will not be taken into account in Raymond’s shares from today onwards. This makes the Lifestyle business stand at an implied base value of Rs 1,203 per share on BSE and Rs 1,250 on NSE.

    The new entity is expected to be listed by September this year and as part of this restructuring process, Raymond will demerge its lifestyle business into Raymond Lifestyle. Ray Global Consumer Trading will be amalgamated into Raymond Lifestyle to streamline the group structure.

    Shareholders of Raymond will receive four equity shares of Raymond Lifestyle for every five shares held in Raymond. Shareholders of Ray Global Consumer Trading will receive two equity shares of Raymond Lifestyle for each share held in Ray Global Consumer Trading.

    “RLL shall issue and allot 4 (Four) fully paid-up equity shares of RLL having face value of Rs 2/- each for every 5 (Five) fully paid-up equity shares of Rs 10/- each of RL to the shareholders of the Company whose names are recorded in the register of members and/or records of the depository as on the Record Date (i.e., Thursday, July 11, 2024),” said the company in a filing to the exchanges.

    For the purpose of determining the cost of acquisition of the equity shares of Raymond and Raymond Lifestyle (post demerger), the company advised to apportion the cost of acquisition of equity shares in the company in the following manner via a filing:

    Raymond- 99.47% of the cost of acquisition

    Raymond Lifestyle- 0.53% of the cost of acquisition

    “Even the whole company with its real estate business, lifestyle, and engineering which is coming up very fast, which can grow very big in the defence and aerospace, the whole company put together their corporate office of 7,000 crores, so everything is quoting much below Manyavar today,” said ace investor Porinju Veliyath, Managing Director at Equity Intelligence India.

    “If you remember when Manyavar was a Rs 22,000 crore company, Raymond was Rs 3,000 crore and this is value investing,” recalls Veliyath.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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