Dear Hitesh Ji
I would like to understand your analysis of the recent corporate actions from Raymond Ltd. They recently sold FMCG brands to Godrej and plan to use the cash proceeds to payoff debt. And more importantly, demerging the lifestyle business (all textile related) into the FMCG arm and planning to list it as a separate entity. Thus, Raymond Ltd will predominantly become a real estate firm with some engineering and Denim businesses and the new company Raymond Consumer care will primarily be the lifestyle business.
It’s being said that such separation of core businesses will unlock shareholder value with investors being able to value RE & Textile businesses separately.
Do you think this is a possibility?
If yes, how should one value these two separate companies?
Thank you
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