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RAYMOND Group's Restructuring to Re-FOCUS on its Core Businesses
M & A Critique
|June 2023
For the last couple of years, it appears Raymond Limited has relentlessly been trying to simplify its structure & create value for shareholders.
The group announced a couple of internal restructurings by calling a step towards creating value for its shareholders. Some of them were withdrew after announcements. In yet another similar move, Raymond Limited announced internal restructuring to list its apparel business separately But this time they also announced selling of their identified Fast-Moving Consumer Goods (FMCG) business to deleverage its balance sheet.
Raymond Limited ("RL" or "Demerged Company") is a leading Indian textile, lifestyle, and branded apparel company with a wide network of operations in local as well foreign markets. RL is also engaged in the development of residential commercial real estate projects. The equity shares of RL are listed on the nationwide bourses. The Non-Convertible Debentures of RL are listed on the Negotiated Trade Reporting Platform of NSE.
Raymond Consumer Care Limited ("RCCL" or "Resulting Company" or "Transferee Company") is engaged primarily in the business of manufacture and sale of condoms and marketing of fastmoving consumer goods. RCCL is a wholly owned subsidiary of Ray Global Consumer Trading Limited.
Ray Global Consumer Trading Limited ("RG" or "Transferor Company") is primarily engaged in the business of investment in shares. RL holds 47.66% of the paid-up equity share capital of RG. Of the remaining 52.34%, 49.68% stake is held by Promoters of RL & 2.65% by other shareholders.
Godrej Consumer Products Limited ("GCPL") is a part of the Godrej group engaged in FMCG business. The equity shares of GCPL are listed on nationwide bourses.
The Transaction
Slump Sale of FMCG Business:
This story is from the June 2023 edition of M & A Critique.
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