Raymond share price locked at 20% upper circuit on business demerger

RAYMOND

Shares of Raymond were locked in 20 percent upper circuit on November 8 after the company demerged its core lifestyle business into a separate listed entity.

The company said the separate entity will be listed through mirror shareholding structure, which means every shareholder of Raymond Ltd will be issued the shares of the new company in the ratio of 1:1.

There were pending buy orders of 66,528 shares, with no sellers available.

The company also announced the allotment of 33,38,278 equity shares worth Rs 225 crore and 18,54,599 compulsorily convertible preference shares of Rs 125 crore to JK Investo Trade, an associate company against the infusion of net proceeds of JKIT land sale that was announced in October 2019.

A total of Rs 350 crore will be used to repay the debt, thus deleveraging the Raymond balance-sheet.

At 1328 hours, Raymond was quoting at Rs 808.40, up Rs 134.70, or 19.99 percent, on the BSE.

News Source:- Moneycontrol

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