In what could be deemed as some good news for the Gautam Singhania-run Raymond Group, the market has reacted positively to the National Company Law Tribunal's approval of the company's de-merger. The company shares, listed on the National Stock Exchange as Raymond Limited, shot up in value at the opening of the trading session on Monday, June 24.
De-merger Approved By NCLT
Earlier, on June 21, the NCLT approved the de-merger of Raymond Ltd into Raymond Lifestyle. In addition, the regulatory body also allowed the amalgamation of Ray Global Consumer Trading Ltd. with Raymond Consumer Care Ltd.
At 09:34 IST, the shares price of the company rose by an impressive 3.40 per cent or Rs 85.95, taking the price of individual shares to Rs 2,613.85 | Image credit: Raymond (Representative)
The demerged entity, Raymond Lifestyle Limited will be listed on the stock markets.
Meanwhile, on Dalal Street, the shares of Raymond Ltd. rose by over 5 per cent in the early hours of the day's trading session. At 09:51 IST, the shares price of the company rose by an impressive 5.47 per cent or Rs 138.40, taking the price of individual shares to Rs 2,666.30. Over the past month alone, the value of the said shares has jumped 17.40 per cent.
As mentioned before, the shares will be listed on the markets at both the NSE and the BSE. Once the approved scheme becomes effective, the existing Raymond shareholders will hold the shares of two listed entities.
The company has had to endure a visibly turbulent period, which came into being as a result of the publicly fought separation between Gautam Singhania and his former wife, Nawaz Modi Singhania. The latter, after the announcement of their separation, was allegedly ousted from the company board. | File photo
Holdings In Two Different Businessess
This detail has arguably made buying a share of this company in its current form (Raymond Ltd.) a tantalising option. This, as the scheme would give shareholders the flexibility to manage their investments in the two businesses.
The company has had to endure a visibly turbulent period, which came into being as a result of the publicly fought separation between Gautam Singhania and his former wife, Nawaz Modi Singhania. The latter, after the announcement of their separation, was allegedly ousted from the company board.
As for the marquee indices, both NSE Nifty and BSE Sensex opened in red on Monday, June 24.
