By
Bloomberg
Published
September 2, 2024
Raymond Ltd., a nearly 100-year-old Indian conglomerate, is looking to take its apparel and real estate units public by the end of 2025 as founders look to boost shareholder value.
The group, which oversees a diverse mix of businesses ranging from engineering and aerospace to fashion and real estate, will have three listed entities next year, after Raymond Lifestyle Ltd. begins trading in Mumbai on Thursday and the real estate unit prepares for a listing in 2025, Chairman Gautam Hari Singhania said in an interview.
The aim of the restructuring is to dismantle Raymond's conglomerate structure, which led to the “moderate valuations” of its businesses, he added. The parent company will retain its engineering and automotive components unit. Each investor will receive four shares in Raymond Lifestyle for every five they own in Raymond Ltd.
The Mumbai-based business group, which started as a woolen mill in 1925 on the outskirts of the city, seeks to increase value for shareholders by giving them the option to invest only in specific Raymond businesses, but not others.
The parent company, whose shares have risen 89% this year, is coming off a low in November when Singhania's acrimonious split from his wife sparked uncertainty among investors and drove down its market value.
Corporate governance issues “are a thing of the past,” Singhania said, adding that the company is pressing ahead with its expansion plans. “Our company is targeting India’s 400 million-strong middle class.”
Raymond Lifestyle, known for its high-end men’s suits and wedding wear, is looking to expand into the 750 billion rupee ($8.9 billion) menswear market and is banking on India’s huge wedding industry to drive the next phase of growth, according to Singhania. Rivals include Vedant Fashions Ltd., which sells the popular wedding wear brand Manyavar, and Aditya Birla Fashion and Retail Ltd.
The apparel unit aims to double its EBITDA (earnings before interest, tax, depreciation and amortisation) and open 900 new stores by 2028, it said. It currently has 1,518 stores in India and 48 stores overseas in seven countries, according to its latest annual report.
