Raymond Limited Vs Raymond Lifestyle Limited (NCLT Mumbai)
Raymond Limited and Raymond Lifestyle Limited (formerly known as Raymond Consumer Care Limited) approached the National Company Law Tribunal (NCLT), Mumbai, seeking approval for a Composite Scheme of Arrangement under Sections 230 to 232 of the Companies Act, 2013. The scheme aimed to demerge Raymond Limited (RL), a leading Indian textile and apparel company with diversified business interests, into two distinct entities: Raymond Lifestyle Limited (RLL) and Ray Global Consumer Trading Limited (RG).
The demerger was proposed to segregate RL’s lifestyle and non-lifestyle businesses into separate entities. RL’s lifestyle business, including branded apparel and real estate, was to be transferred to RLL. In contrast, its non-lifestyle business and investments were to be amalgamated with RG.
The scheme was designed to streamline operations, enhance operational efficiencies, and unlock shareholder value by creating two focused and independently managed listed entities. It was intended to cater to different investor groups with specific interests and risk appetites, thereby optimizing capital structures and growth strategies for each business vertical.
The Board of Directors of both Raymond Limited and Raymond Lifestyle Limited approved the scheme on 27th April 2023, setting the Appointed Date as 1st April 2023. This scheme was formulated based on a joint valuation report by KPMG Valuation Services LLP and BDO Valuation Advisory LLP, determining the share exchange ratio for shareholders of RL and RG.
