1:1 Demerger: Mukul Agrawal Earned Rs 9,49,00,000 in Just 1 Hour as Stock Hits Upper Circuit Today!
The company’s shares have delivered an impressive multibagger return of around 345 per cent in the past 3 years.
This Textile company was incorporated in 1925 and is a diversified group with interests in the textile and apparel sectors, as well as a presence across diverse segments such as real estate, FMCG, and engineering in national and international markets across 55+ countries, including the USA, Europe, Japan, and the Middle East. The company has a retail network of 1,638 stores, including 1,589 stores in about 600 towns and cities in India and 49 overseas stores in nine countries. It is one of the largest vertically and horizontally integrated manufacturers of worsted suiting fabric in the world.
Ace investor Mukul Agrawal owned a 1.50 per cent stake or 10,00,000 shares in Raymond Limited, and following today's spike in the stock price, he gained around Rs 9,49,00,000 in just 1 hour of today’s trading session.
Raymond Limited shares are trading at around Rs 1992.90 per share. The company’s current market capitalization stands at Rs 13,267.48 crore. The stock has delivered a multibagger return of over 340 per cent in just 3 years.
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As per the Quarterly Results, in the fourth quarter of FY24, Raymond Limited recorded a revenue of Rs 2608 crore. The operating profit for Q4 FY24 stood at Rs 435 crore. The net profit for Q4 FY24 was Rs 230 crore. Looking at the annual performance, the company generated a revenue of Rs 9020 crore in FY24, compared to Rs 8215 crore in FY23. The operating profit for FY24 was Rs 1309 crore, with a net profit of Rs 1643 crore.
Demerger
The Board of Directors of Raymond Limited ("RL") at its meeting held on July 4, 2024, approved a Scheme of Arrangement between RL (the 'Demerged Company') and Raymond Realty Limited ("RRL"). Upon the Scheme becoming effective on the defined Effective Date, RRL issued 6,65,73,731 (Six Crores Sixty-Five Lakhs Seventy-Three Thousand Seven Hundred and Thirty-One) equity shares of RRL, each with a face value of Rs 10 (Indian Rupees Ten), to the equity shareholders of RL.
As part of the demerger, the approved share exchange ratio was 1 (One Only) fully paid-up equity share of Raymond Realty Limited, with a face value of Rs 10 each, for every 1 (One Only) fully paid-up equity share of Raymond Limited, also with a face value of Rs 10 each. Importantly, there was no cash or other form of consideration involved in this demerger.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.