India-based textile-focused retailer Raymond has planned to demerge its core lifestyle business and to list it as a separate entity.
As a part of this move, each Raymond shareholder will be issued shares of the new entity in a 1:1 ratio. The listing will be carried out in the mirror shareholding structure.
Raymond will retain its real estate project, thane land bank, b2b shirting business, engineering businesses of auto components and tools and hardware, denim and FMCG business.
The newly listed company, Raymond Lifestyle, will manage the existing business of branded textile, branded apparel and garments.
Raymond chairman and managing director Gautam Hari Singhania said: “For over three years now, we have been relentless in building the organisation that is future ready and our efforts have been unwavering during this transformational journey despite multiple challenges.
“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.”
Raymond Lifestyle has a network of more than 1,500 stores across over 600 towns and cities. Its brands include Raymond Ready to Wear, Park Avenue, ColorPlus, Parx and Raymond Made to Measure.
In a separate development, the company said that the entire net proceeds of its associate company JKIT land sale will be infused into Raymond.