afaqs! news bureau

NCLT approves Raymond Group's demerger of lifestyle business and amalgamation of consumer trading arm

It enables a streamlined structure, separating Raymond and Raymond Lifestyle, and integrating Ray Global Consumer Trading.

The National Company Law Tribunal has approved Raymond’s restructuring scheme, which includes the demerger of its lifestyle business and the amalgamation of its consumer trading arm, as reported by ET. This will create a more focused corporate structure with separate entities for Raymond Lifestyle and Ray Global Consumer Trading.

Shareholders will receive equity shares in Raymond Lifestyle based on a swap ratio, and the shares will be listed on the stock exchanges. The restructuring aims to unlock the potential value of Raymond’s business verticals, enhance operational synergies, and attract targeted investments.

The move will create two distinct, publicly listed entities with independent management and operations. Raymond plans to achieve zero net debt for both businesses post-restructuring and simplify operations while providing clear strategic direction. The demerger is set for April 1, 2023, with the effective date following the NCLT order filing.

This restructuring is expected to position Raymond Lifestyle as a key player in the consumer goods sector, focusing on lifestyle products and fast-moving consumer goods markets. The restructuring is supported by lawyers arguing that each business vertical has unique attractiveness to investors and will benefit from targeted funding to drive long-term growth strategies.

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