Along with the deal, they are restructuring the business (not sure how to look at it)
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Raymond Consumer Care Ltd is an associate of Raymond Ltd (where Raymond Ltd holds 48% and Singhania family holds 52%)
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Raymond Consumer Care houses the FMCG business, most of which is being sold to Godrej Consumer Products Limited for 2800 Crores
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Raymond Ltd will demerge it’s entire lifestyle business into Raymond Consumer Care Ltd and will list it as a separate entity (the new entity will be (net) debt free with the money coming in from Godrej Consumer Products)
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Shareholders of Raymond Ltd (the current listed company) will get 4 shares of the new to be listed company Raymond Consumer Care (4 shares of Raymond Consumer for 5 shares of Raymond Ltd)
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Raymond Ltd will become primarily a real estate company with investments in Engineering & Denim business (and will be debt free)
Experts – please share your views on how you see this and if this is beneficial for us investors
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