The Mumbai bench of the National Company Law Tribunal (NCLT) approved the composite scheme for the demerger of Raymond Limited, Raymond Lifestyle, and Ray Global Consumer Trading.
Raymond Limited stated that the rationale behind the scheme was the distinct operational requirements and strategic focus of Raymond’s different business verticals. RL currently has both lifestyle and non-lifestyle segments, each with unique capital needs, operational dynamics, risk profiles, and growth strategies. By demerging these segments into separate entities Raymond Lifestyle ( RLL ) for lifestyle and RG amalgamated into RLL—Raymond stated to the bench that it aims to optimize management focus and enhance operational efficiencies tailored to each business’s specific demands.
It was further stated that the key objective of the demerger was to create two distinct and robust listed entities. Post-demerger, RLL will assume zero net debt for both its lifestyle and non-lifestyle operations, positioning itself for sustained growth and market competitiveness.
The scheme mandates that equity shares of RLL will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). It offers existing RL shareholders the opportunity to manage investments across two distinct business profiles with differentiated market dynamics.
In compliance with regulatory requirements, the scheme detailed specific undertakings related to accounting standards (IND-AS), the appointed date (1 April 2023), the effective date, and other statutory obligations under the Companies Act, 2013. The companies stated that they would ensure seamless compliance with income tax, GST regulations, and directives from sectoral regulators. The Official Liquidator’s report confirmed that the demerger scheme was in the public interest and did not prejudice any stakeholders.
The two-member bench of Kishore Vemulapalli (Judicial Member) and Anu Jagmohan Singh (Technical Member) approved the demerger as all statutory compliances were fulfilled, including the filing of requisite documents with the Registrar of Companies and Superintendent of Stamps.
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