NCLT Approves Composite Scheme for Demerger of Raymond Limited and Raymond Lifestyle

The Mumbai bench of the National Company Law Tribunal (NCLT) approved the demerger scheme for Raymond Limited, Raymond Lifestyle, and Ray Global Consumer Trading. The rationale behind the scheme was to address distinct operational requirements and strategic focuses within Raymond’s different business verticals. Raymond Limited, currently encompassing both lifestyle and non-lifestyle segments with diverse capital needs and growth strategies, proposed demerging these into separate entities—Raymond Lifestyle (RLL) for lifestyle operations and Ray Global amalgamated into RLL. \r

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This restructuring aims to enhance operational efficiencies tailored to each business's needs and create two robust listed entities. Post-demerger, RLL is set to assume zero net debt across its operations, positioning itself for sustained growth and market competitiveness. The scheme mandates listing RLL’s equity shares on both BSE and NSE and includes compliance with regulatory requirements like IND-AS accounting standards and statutory obligations under the Companies Act, 2013. The Official Liquidator affirmed the scheme's public interest alignment and stakeholder non-prejudice. The two-member NCLT bench approved the demerger based on fulfilled statutory compliances.