The latest presentation gives a slightly better picture. From the sale to Godrej, the post tax realization is 2200 Crores. The promoter family is not cashing out, neither does Raymond ltd and hence the entire 2200 crores stays in the books of RCCL.
Raymond Ltd has a gross debt of 2000 crores and net debt of 932 crores as on Dec 2022. When the lifestyle business is de-merged into RCCL, am not sure how much of the gross and net debt will move from Raymond Ltd to RCCL.
The presentation says the overall Raymond group (Both Raymond Ltd & RCCL) will remain NET debt free and cash surplus of 1300 crores. I am not a finance expert but if they intend to pay off the debt, they should not mention the term NET DEBT FREE but should just mention as DEBT FREE, isn’t it?
I assume that if they don’t pay of the debt, then quarterly earnings will have an interest cost. Is that correct?
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