Raymond zooms 13% to a new 52-week high; stock up 33% in one week

Raymond convened shareholders meeting on December 27, 2021 to approve the scheme of arrangement of Raymond Apparel (demerged company) and Raymond (resulting company) their respective shareholders

Shares of Raymond continued the northbound journey, hitting a fresh 52-week high of Rs 673, on ralling 13 per cent on the BSE in Monday’s intra-day trade. In the past one week, the stock has zoomed 33 per cent, as compared to 1.7 per cent decline in the S&P BSE Sensex.

On Wednesday, November 24, 2021, Raymond informed the stock exchanges that it convened shareholders meeting on December 27, 2021 to approve the scheme of arrangement of Raymond Apparel (demerged company) and Raymond (resulting company) their respective shareholders.

The board of directors of Raymond at its meeting held on November 7, 2019 had approved the composite scheme of arrangement which comprise of amalgamation of Raymond Apparel (wholly owned subsidiary of the company) and Scissors Engineering Products Limited (wholly owned subsidiary of the Company) with the Company and then demerger of the lifestyle business undertaking into Raymond Lifestyle on a going concern basis.

The demerger is expected to be completed by end-FY22. Raymond Lifestyle is expected to be a listed entity and will have a mirror shareholding of Raymond.

Raymond Apparel is a wholly owned subsidiary of Raymond, one of the leading players of the worsted suiting business. It is the flagship company of Raymond Group, a diversified conglomerate with business in textiles, apparel retailing, real estate, engineering files, engineering tools and auto components.

Raymond has some of the leading brands within its portfolio ‘ –Raymond Ready to Wear’, ‘Park Avenue’, ‘ColorPlus’, ‘Parx’, ‘Raymond Made to Measure ’amongst others.

The company’s branded textiles segment accounted 47 per cent of total revenue. In July-September quarter (Q2FY22), the segment reported strong growth of 214 per cent year on year to Rs 722 crore, driven due to improvement in both primary sales as well as secondary sales. The segment posted healthy EBITDA margin of 16.8 per cent mainly driven by operational efficiencies.

“The consumer facing businesses are witnessing strong resurgence of demand and we witnessed an uptick on a week on week basis during the quarter. With the onset of festive and wedding season, the consumer sentiment is upbeat primarily due to large scale vaccination drive across the country. With the opening up of global economy, there is an impetus on our Garmenting export business that continues to perform well with a healthy order book,” Gautam Hari Singhania, Chairman & Managing Director, Raymond said while announcing Q2 results on October 27, 2021.

In the past three months, the stock has zoomed nearly 70 per cent, as compared to 2.4 per cent rise in the S&P BSE Sensex. At 12:36 pm; it was trading 11 per cent higher as against a 0.76 per cent gain in the benchmark index. The trading volumes on the counter almost doubled with a combined 5.3 million shares changing hands on the NSE and BSE.