The steep correction in the stock price of Raymond provides the contrarian investor an opportunity to invest in a high-quality consumer franchise as the markets enter unlock phase of the pandemic.
Agrawal had 2,49,22,255 equity shares in Infibeam as of June 2020. With this transaction, he has increased the shareholding to over 4 percent.
Agarwal, who was the CEO of Jindal Coated Steel Products Ltd prior to joining Raymond, assumed the new role with effect from July 2, the company said in a regulatory filing.
It is also looking at long-term funding and alternate working capital availability to manage liquidity as business restarts with gradual easing of lockdown.
Revenue from operations fell 29.30 per cent to Rs 1,278.65 crore during the quarter under review as against Rs 1,808.71 crore in the corresponding period of the previous fiscal.
Some of the retrenched employees are getting ready to approach the labour commission and civil courts seeking re-employment or full salaries.
The company said it has undertaken cost rationalisation and various cost control measures related to sales and marketing, manpower, rentals and others to minimise the impact of the pandemic on business.
Raymond Group announced the demerger recently and has already initiated the process of completing the formalities for listing the new lifestyle entity, ‘Raymond Lifestyle Ltd.’
The share touched its 52-week high Rs 868.80 and 52-week low Rs 480.20 on 28 May, 2019 and 03 March, 2020, respectively.
Revenue of the company rose 12.5 percent at Rs 1,885.4 crore versus Rs 1,675.2 crore, YoY.
For shareholders, demergers have generally been positive due to value unlocking. Markets have reacted positively to such events
Consequently, once the proposed scheme is approved by the National Company Law Tribunal (NCLT), Raymond lifestyle business will not be required to pay any royalty to Raymond Ltd for its use of the brands.
Moneycontrol's Sakshi Batra does a 3-Point Analysis to find out how each of these could benefit the company.
After a sharp rally seen in the past five-weeks, experts feel that the market could consolidate in a range before moving higher. Resistance placed near 12,000-12,100 levels.
The existing company will retain its real estate projects, the Thane land bank, its B2B shirting business, the engineering businesses of auto components, tools and hardware, denim and FMCG.
Bahl, however, added that the board of directors will take a decision on the utilisation of the proceeds of this particular land monetisation once the transaction is closed.
The company, which is the retail arm of private equity firm Xander, announced an "investment of USD 340 million (Rs 2,400 crore) in a retail-anchored project in the Mumbai Metropolitan Region."
The company agreed to sell property for Rs 700 crore subject to payment of taxes, cost of approval as applicable.