Raymond share price gains over 5% after board nod to consolidation plan
The company's board has approved the consolidation of tools & hardware and auto components businesses into engineering business
September 28, 2021 / 10:09 AM IST
Raymond share price gained over 5 percent in the morning trade on September 28 after the board approved the consolidation of tools & hardware and auto components businesses into an engineering business.
The decision was aimed at improving synergies and exploring monetisation options for deleveraging Raymond, the company said in its press release.
“We are consolidating the business to explore all options available to us for monetization, which will enable deleveraging leading to value creation," Chairman & Managing Director Gautam Hari Singhania said.
To achieve high growth momentum in the real estate business, the board also gave in‐principle approval for subsidiarisation of the real estate business division through a wholly-owned subsidiary.
With a focus to fast track recovery after the coronavirus outbreak, Raymond will consolidate its B2C business by transfer of apparel business into Raymond, it said.
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To enable and execute these, the company has withdrawn the de‐merger scheme of Lifestyle business announced in November 2019.
"...our realty business has showcased performance since its launch and in order to realize its full potential it will now be a wholly owned subsidiary of Raymond Limited. We continue to focus on our B2C business by bringing in operational efficiencies and synergies to strengthen our Lifestyle business," Singhania added.
At 0936 hours, Raymond was quoting at Rs 463.00, up Rs 15.20, or 3.39 percent on the BSE.