Raymond Ltd., an Indian conglomerate nearly a century old, is planning to list its apparel and real estate units by the end of 2025 as part of a strategic effort to enhance shareholder value.
The group, which operates across diverse sectors including engineering, aerospace, fashion, and real estate, will have three listed entities by next year. This follows the trading debut of Raymond Lifestyle Ltd. in Mumbai on Thursday and the planned 2025 listing of the real estate division, according to Chairman Gautam Hari Singhania.
The restructuring essentially aims to break up the conglomerate structure that has seen Raymond’s various businesses commanding “subdued valuations” in the past. While the parent firm will retain an engineering and auto components unit, Raymond Ltd. shareholders will get four shares of Raymond Lifestyle for every five shares that they hold in it.
From its modest beginning in 1925 as a wool mill located on the outskirts of Mumbai, Raymond has grown into value creation for its shareholders, who can henceforth exercise a choice over specific business units for investment in the company. The group’s shares have become 89% this year after touching a low in November in the aftermath of allegations of personal legal disputes relating to its major promoter, Singhania.
Singhania said the company has left its corporate governance issues behind and was forging ahead with expansion plans that would tap India’s 400-million-strong middle class.
Raymond Lifestyle, which dominates the high-end menswear and wedding wear segment, is eyeing growth in India’s $8.9 billion menswear market by leveraging the booming wedding sector. The apparel unit, competing with Vedant Fashions’ Manyavar and Aditya Birla Fashion and Retail Ltd, plans to double EBITDA and open 900 new stores by 2028, on top of its present network of 1,518 stores in India and 48 outlets overseas across seven countries.
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Source: Moneycontrol
News Desk
