Free of net debt, Raymond to spin off lifestyle business as separate listed entity

Raymond's The lifestyle business consists of suiting business with manufacturing plants, B2C shirting, branded apparel and subsidiaries including garmenting business and B2B shirting. (Representative Image)

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26 Aug, 2025 12:21

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Textile and real estate player Raymond Ltd has announced the demerger of its lifestyle business to Raymond Consumer Care to create a listed entity with pure-play B2C-focused lifestyle business.

The lifestyle business consists of suiting business with manufacturing plants, B2C shirting, branded apparel and subsidiaries including garmenting business and B2B shirting.

Consequently, the currently listed Raymond Ltd will primarily become a real estate company with investments in engineering and denim business.

Raymond Consumer Care is an associate of Raymond Ltd, in which Raymond Ltd holds 47.66 percent, promoter group holds 49.68 percent and public shareholding is 2.66 percent.

"This corporate action has been initiated with the sale of the FMCG business under RCCL Raymond Consumer Care to Godrej Consumer Products for a consideration of Rs 2,825 crore," the company said in an exchange filing.

Also Read: Godrej Consumer to acquire Raymond’s consumer care business for Rs 2,825 crore

The move to demerge the lifestyle business from Raymond Limited will enable the business to be net-debt free and become an independently listed entity, it added.

The Street had always been skeptical of Raymond Ltd generating good cash from the textile business and then investing it in the real estate business, where leverage is high.

As of December 2022 end, Raymond's consolidated gross debt stood at Rs 2,022 crore and net debt at Rs 932 crore.

"At the promoter level, we continue to remain committed, and the efforts have been demonstrated by infusing funds generated from monetization of assets," said Gautam Hari Singhania, Chairman and Managing Director of Raymond Limited.

Going forward, each shareholder of Raymond Limited will get 4 shares of Raymond Consumer Care for every 5 shares held when the latter lists. The share swap ration was suggested by independent valuers KPMG and BDO along with a fairness opinion issued by ICICI Securities, said the company.