New Delhi: Textile major Raymond will demerge its lifestyle business to Raymond Consumer Care (RCCL) to create a listed entity with B2C focused lifestyle business, the company said in an investor presentation on Thursday.
With this move, the conglomerate will now be divided into two listed entities, Raymond Ltd (RL) and Raymond Consumer Care Ltd (RCCL). Raymond will be a real estate company with investments in engineering and denim business and RCCL will be a pure play-listed Lifestyle business.
Each Raymond shareholder will get 4 shares of RCCL for every 5 shares held, the company announced.
“In line with our commitment to creating shareholder value, we have taken an affirmative action by demerging our Lifestyle Business that will be a separate listed entity with zero net debt,” said Gautam Hari Singhania, chairman, and MD, Raymond.
RCCL as a lifestyle business will include brands such as Raymond, Park Avenue, Parx, Ethnix, and Color Plus. It will sell across categories including branded textiles, branded apparel, garments, and high-value cotton shirting.
Earlier during the day, Raymond announced that it has sold its FMCG business, a part of RCCL to Godrej Consumer Care for Rs 2,825 crore. The company plans to use the proceeds to repay debt and make the Raymond Group net debt free.
As of December 2022, Raymond’s consolidated gross debt was Rs 2,022 crore, while its net debt stood at Rs 932 crore.