What a run on the bourses Raymond is having today! With volumes jumping up over 12 times, the stock which had closed yesterday at Rs.673.70, opened higher at Rs.695 and went on to hit an intraday high at Rs.801.10, not too far from its 20% UC today of Rs.808.40.
The market is thrilled to bits with Raymond’s restructuring plans. Yesterday after market hours, the company announced the demerger of its core Lifestyle Business into a separate entity that will be listed through mirror shareholding structure. Every shareholder of Raymond will be issued the shares of the new company in the ratio of 1:1. The move will create a clear demarcation of Lifestyle & other businesses leading to the simplification of the Group structure.
In another development, Raymond Limited announced the allotment of Equity Shares and Compulsorily Convertible Preference Shares (CCPS) to JKIT, an Associate Company against the infusion of net proceeds of JKIT land sale that was announced in October 2019. A total of Rs. 350 crore will be used to repay the debt thus deleveraging the Balance Sheet of Raymond. Of this, Rs.225 crore will through issue of 33,38,278 equity shares and Rs. 125 crore through issue of 18,54,599 Compulsorily Convertible 0.01% Preference Shares (conversion ratio 1:1). The equity Shares and CCPS is to be issued at Rs.674 per share.
Post this, promoter stake will go up from 43.83% to 48.21%.
As at 30th Sept 2019, Raymond’s debt stood at Rs.2500 crore.