Raymond Shares Rally Green; Gain Over 16% After Company BoD's Demerger Approval

Raymond Shares Rally Green; Gain Over 16% After Company BoD's Demerger Approval

In the intraday trade proceedings on Friday, July 5, the lifestyle and apparel company gained a mammoth 15 per cent and above, before the halfway mark.

Juviraj AnchilUpdated: Friday, July 05, 2024, 12:01 PM IST
article-image

Raymond has been one of the most intriguing stocks watch for the past few trading sessions. In a development that appears to have encouraged investors to go bullish on the company's stocks, the company's board of directors approved the much-anticipated demerger of the existing company into Raymond Ltd and Raymond Realty Limited (RRL) on July 4.

Raymond Shares Rise After Meeting

In the intraday trade proceedings on Friday, July 5, the lifestyle and apparel company gained a mammoth 15 per cent and above, before the halfway mark.

The demerger arrangement would allow current shareholders of the company to hold shares in two different entities, once the demerger is completed.

The demerger arrangement would allow current shareholders of the company to hold shares in two different entities, once the demerger is completed.

The demerger arrangement would allow current shareholders of the company to hold shares in two different entities, once the demerger is completed. | Image credit: Raymond (Representative)

This is perhaps a tanatalizing prospect for many investors, thereby making the purchase of the share of the current entity more attractive.

Demerger Approved By BoD

In an exchange filing, Raymond informed, In compliance with Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), this is to inform you that basis the recommendation of Audit Committee, the Board of Directors of the Company (“Board”) at its meeting held on July 4, 2024, has approved the Scheme of Arrangement of Raymond Limited (the ‘Demerged Company’ or ‘RL’) and Raymond Realty Limited (the ‘Resulting Company’ or ‘RRL’) and their respective shareholders (“Scheme”) as may be modified from time to time pursuant to the provisions of Sections 230 to 232 read with Section 66 and other applicable sections/ provisions."

At 11:45 IST, before the halfway mark, Raymond Ltd saw its shares take a giant leap with a 17.78 per cent or a mammoth Rs 522.80, rocketing past the Rs 2000 mark to Rs 3,462.85 per share.

At 11:45 IST, before the halfway mark, Raymond Ltd saw its shares take a giant leap with a 17.78 per cent or a mammoth Rs 522.80, rocketing past the Rs 2000 mark to Rs 3,462.85 per share. | Image: Wikipedia (Representative)

"if any, of the Companies Act, 2013 and the rules framed thereunder, subject to the requisite approvals and sanction of the jurisdictional bench of National Company Law Tribunal (“NCLT”) and subject to the approval of shareholders and / or creditors of RL, Central Government, or such other competent authority as may be directed by the NCLT."

It further added, The Scheme inter-alia provides for demerger of real estate business carried on by RL (‘Real Estate Business Undertaking’), into RRL, a wholly owned subsidiary of RL along with the consequential reduction and cancellation of the paid-up share capital of RRL held by RL."

At 11:45 IST, before the halfway mark, Raymond Ltd saw its shares take a giant leap with a 17.78 per cent or a mammoth Rs 522.80, rocketing past the Rs 2000 mark to Rs 3,462.85 per share.  

RECENT STORIES

One app, endless possibilities-Manage bills, recharges and more with Bajaj Finserv

One app, endless possibilities-Manage bills, recharges and more with Bajaj Finserv

Microsoft Outage: From Airlines, Banks To Media Houses; Cloud Glitch Brings The World To A Grinding...

Microsoft Outage: From Airlines, Banks To Media Houses; Cloud Glitch Brings The World To A Grinding...

Q1FY25 Earning Updates: Dalal Street Gives Up Record High Levels, Indices Concluded In Red ; Check...

Q1FY25 Earning Updates: Dalal Street Gives Up Record High Levels, Indices Concluded In Red ; Check...

UltraTech Cement Sees Sharp Drop Of Over 3.25% After Weak Q1 Financial

UltraTech Cement Sees Sharp Drop Of Over 3.25% After Weak Q1 Financial

Tata Curvv, India’s First SUV Coupe, Exterior Unveiled Before August 7 Debut

Tata Curvv, India’s First SUV Coupe, Exterior Unveiled Before August 7 Debut