Raymond shares hit 52-week high after entering into Rs 2,825 crore deal with Godrej Consumer
Raymond Consumer Care's FMCG business is being sold to GCPL along with the trademarks of Park Avenue (for the FMCG category), KS, KamaSutra and Premium, through a slump sale, Godrej Consumer stated in an exchange filing. The deal is expected to be completed by May 10, 2023, it added.
- Apr 27, 2023,
- Updated Apr 27, 2023 8:18 PM IST
Shares of Raymond Ltd rose sharply on Thursday to touch their one-year high level after Godrej Consumer Products acquired the fast-moving consumer goods (FMCG) business of Raymond Consumer Care for Rs 2,825 crore. The stock jumped 8.95 per cent to hit an intraday high of Rs 1,756 on NSE. It eventually settled 6.15 per cent higher at Rs 1,711 over a previous close of Rs 1,611.85.
Raymond Consumer Care's FMCG business is being sold to GCPL along with the trademarks of Park Avenue (for the FMCG category), KS, KamaSutra and Premium, through a slump sale, Godrej Consumer stated in an exchange filing. The deal is expected to be completed by May 10, 2023, it added.
Sudhir Sitapati, Managing Director and CEO at Godrej Consumer, said: "This acquisition allows us to complement our business portfolio and growth strategy with under-penetrated categories that offer a long runway of growth. Raymond is a leading player in the deodorants and sexual wellness categories with brands like Park Avenue and KamaSutra. These categories have the potential to deliver double-digit multi-decade growth given the low per capita consumption in India compared to similar emerging markets."
Atul Singh, Group Vice-Chairman of Raymond Group, said, "We believe that Godrej Consumer Products will provide the requisite impetus to further drive the growth of these brands."
In a separate filing, Raymond said it has demerged its Lifestyle Business to Raymond Consumer Care to create a listed entity with a pure-play B2C-focused lifestyle business, which would enable it to be net debt free. "Post demerger of the lifestyle business, Raymond would primarily be a listed real estate company with investments in engineering and denim business," the company mentioned.
Going forward, the lifestyle business that now moves under Raymond Consumer Care would be listed and each shareholder of Raymond will get 4 shares of Raymond Consumer for every 5 shares held based on the swap ratio, it further stated.
On the technical front, Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said, "Raymond has shown a V-shaped recovery from the last breakout level at Rs 1,100-1,150. Presently, it is trading at its all-time high of Rs 1,756. The overall structure of the stock looks lucrative, as it is trading above its all-important moving averages. On the higher side, Rs 1,750 is acting as an important psychological level. Above this, we can expect a level of Rs 1,800-plus in the near-short term, while on the lower side, it has already given a big move in April. So, support will come at around Rs 1,550 level."
Meanwhile, shares of Godrej Consumer slipped 2.35 per cent today to settle at Rs 953.20.
Also read: Bajaj Finserv Q4 profit jumps 31% to Rs 1,769 crore; dividend announced
Also read: HUL Q4 results: Profit rises 13% to Rs 2,601 crore; FMCG major announces Rs 22 dividend
Shares of Raymond Ltd rose sharply on Thursday to touch their one-year high level after Godrej Consumer Products acquired the fast-moving consumer goods (FMCG) business of Raymond Consumer Care for Rs 2,825 crore. The stock jumped 8.95 per cent to hit an intraday high of Rs 1,756 on NSE. It eventually settled 6.15 per cent higher at Rs 1,711 over a previous close of Rs 1,611.85.
Raymond Consumer Care's FMCG business is being sold to GCPL along with the trademarks of Park Avenue (for the FMCG category), KS, KamaSutra and Premium, through a slump sale, Godrej Consumer stated in an exchange filing. The deal is expected to be completed by May 10, 2023, it added.
Sudhir Sitapati, Managing Director and CEO at Godrej Consumer, said: "This acquisition allows us to complement our business portfolio and growth strategy with under-penetrated categories that offer a long runway of growth. Raymond is a leading player in the deodorants and sexual wellness categories with brands like Park Avenue and KamaSutra. These categories have the potential to deliver double-digit multi-decade growth given the low per capita consumption in India compared to similar emerging markets."
Atul Singh, Group Vice-Chairman of Raymond Group, said, "We believe that Godrej Consumer Products will provide the requisite impetus to further drive the growth of these brands."
In a separate filing, Raymond said it has demerged its Lifestyle Business to Raymond Consumer Care to create a listed entity with a pure-play B2C-focused lifestyle business, which would enable it to be net debt free. "Post demerger of the lifestyle business, Raymond would primarily be a listed real estate company with investments in engineering and denim business," the company mentioned.
Going forward, the lifestyle business that now moves under Raymond Consumer Care would be listed and each shareholder of Raymond will get 4 shares of Raymond Consumer for every 5 shares held based on the swap ratio, it further stated.
On the technical front, Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said, "Raymond has shown a V-shaped recovery from the last breakout level at Rs 1,100-1,150. Presently, it is trading at its all-time high of Rs 1,756. The overall structure of the stock looks lucrative, as it is trading above its all-important moving averages. On the higher side, Rs 1,750 is acting as an important psychological level. Above this, we can expect a level of Rs 1,800-plus in the near-short term, while on the lower side, it has already given a big move in April. So, support will come at around Rs 1,550 level."
Meanwhile, shares of Godrej Consumer slipped 2.35 per cent today to settle at Rs 953.20.
Also read: Bajaj Finserv Q4 profit jumps 31% to Rs 1,769 crore; dividend announced
Also read: HUL Q4 results: Profit rises 13% to Rs 2,601 crore; FMCG major announces Rs 22 dividend