The National Company Law Tribunal (NCLT) has approved the demerger scheme of Raymond Ltd, paving the way for the reorganisation of its real estate business into a separate entity, Raymond Realty.
The move is aimed at unlocking the growth potential of the group’s real estate vertical and attract strategic investors. Raymond Ltd, the demerged company, will transfer its real estate assets and operations to Raymond Realty Limited, the resulting company, effective from April 1, 2025.
As part of the scheme of this demerger exercise, existing Raymond shareholders will be receiving one equity share of Raymond Realty for every share held in Raymond Ltd.
Post-demerger, Raymond Realty’s equity shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), providing shareholders with investment flexibility in two distinct entities.
The tribunal’s Mumbai bench delivered its order on Thursday, endorsing the proposal under Sections 230 and 232 of the Companies Act, 2013.
The company emphasized the scheme’s strategic benefits, highlighting that separating Raymond’s textile and real estate businesses would enable focused management, efficient resource allocation, and independent growth trajectories.
The scheme has received the required approvals from regulatory bodies, including observation letters from the BSE and NSE, which raised no adverse objections.
The tribunal has directed the company to convene meetings of Raymond Ltd’s over 1.72 lakh equity shareholders and 534 unsecured creditors within 60 days via video conferencing and e-voting, ensuring participation from stakeholders nationwide.
It has also directed the company to send separate notices to the Ministry of Corporate Affairs, Income Tax Authorities, GST Departments, SEBI, and RERA. The tribunal has allowed these authorities 30 days from the date of receipt of these notices to submit objections, if any, failing which it will presume no opposition to the scheme.
The scheme requires the companies to submit details of contingent liabilities, pending litigation, and other financial disclosures. An affidavit confirming compliance with the tribunal’s directions must also be filed within ten working days after issuing notices to stakeholders and authorities.
In June, the National Company Law Tribunal (NCLT) approved Raymond Ltd’s comprehensive restructuring plan, which includes the demerger of its lifestyle business and the amalgamation of Ray Global Consumer Trading into Raymond Lifestyle. This restructuring aims to create a more focused and streamlined corporate structure, unlocking the potential value of Raymond’s distinct business verticals.
Raymond Ltd, known for its operations in textiles, branded apparel, and real estate development, is set to achieve zero net debt for both lifestyle and non-lifestyle businesses post-restructuring. This strategic move is anticipated to simplify operations, enhance management efficiency, and provide a clear strategic direction for each business unit.
Source: Economic Times