Mukul Agrawal-Backed Company Announces Demerger; Shareholders to Receive 1 Share for Every 1 Share Held; Complete Details Inside

The company’s shares have delivered an impressive multibagger return of around 600 per cent in the past 3 years.

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 will issue 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 is 1 (One Only) fully paid-up equity share of Raymond Realty Limited, with a face value of INR 10 each, for every 1 (One Only) fully paid-up equity share of Raymond Limited, also with a face value of INR 10 each. Importantly, there is no cash or other form of consideration involved in this demerger.

Raymond Limited shares closed the day at Rs 2941.90 per share. The company’s current market capitalization stands at Rs 19585.33 crore. The stock has delivered a multibagger return of over 600 per cent in just 3 years.

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.

Investors must keep this Small-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.