Meanwhile, its nascent real estate division will be made a wholly-owned subsidiary of the company. The restructuring plan is aimed at monetising its assets, cutting debt and improving operational synergies. Raymond had a gross debt of Rs 2,470 crore as of March 31, according to Crisil Research.
Its stock gained 1.73% to close at Rs 447.8 apiece on the BSE against a flat benchmark. As part of the scheme, the tools and hardware and the auto components businesses will be merged into JK Files, a wholly-owned subsidiary.
“We are consolidating the business to explore all options available to us for monetization, which will enable deleveraging leading to value creation,” said Gautam Singhania, chairperson of Raymond, in a statement. In November 2019, the company announced the demerger of its apparel business held under Raymond Apparel.
The demerger scheme has been withdrawn and the lifestyle business will be transferred to Raymond to streamline the group’s B2C businesses.
