Raymond demerges lifestyle business to RCCL to create a listed entity

Raymond on Thursday announced the demerger of its lifestyle business to Raymond Consumer Care Limited (RCCL) to create a listed company.

This comes alongwith RCCL selling its FMCG business to Godrej Consumer Product Ltd for a consideration of Rs 2,825 crore.

This step will make Raymond Ltd primarily a real estate company with investments in engineering and denim business, the company said in a briefing in Mumbai.
 
The company also said this would make RCCL a separate listed entity with zero net debt.

RCCL is majorly owned by promoter company and Raymond Limited, and consequent upon sale of FMCG business, the promoter will deploy the entire proceeds of this transaction into the lifestyle business

Raymond Limited will now be a pure play realty business listed entity along with investments in engineering and denim businesses.

Through the slump sale, trademarks like Park Avenue deo, KS, Kamasutra have now been moved to GCPL. However, RCCL will retain its condom manufacturing.

With listing of RCCL, shareholders of Raymond Ltd will get 4 shares of RCCL for every 5 shares held through a swap, the company said.

Speaking at the media briefing, Gautam Singhania, Chairman and MD, Raymond Limited, said, "With this deal, I have managed to kill three birds with one stone." He described that with this deal, the company has managed to sell a business, make RCCL debt free and reinvested the Rs 1,400 crore made as the promoter back towards Raymond Group.