Raymond Lifestyle Hits Lower Circuit After Listing At 99% Premium On BSE

Raymond Lifestyle Ltd. was locked in a 5% lower circuit after a stellar market debut on Thursday. Shares of the company listed on the BSE on Thursday at Rs 3,000 apiece, a premium of 99.5% over its base price of Rs 1,503.3 per share. On the National Stock Exchange, the Raymond Lifestyle stock debuted at Rs 3,020 per share, marking a premium of 93% against the base price of Rs 1,562.6 per share.

The scrip was down 5% at Rs 2,850 apiece compared to a 0.09% decline in the benchmark S&P BSE Sensex as of 11:35 p.m.

Gautam Singhania-led Raymond Ltd. demerged its consumer lifestyle business to create a pure-play consumer branded apparel and textiles business. Post the demerger, Raymond Lifestyle will have four key segments—wedding and ethnic wear, garments exports, branded apparel and textiles.

Raymond Lifestyle was demerged from the parent and shareholders were given four shares of the face value of Rs 2 for every five shares of Rs 5 face value of the parent. After the demerger, Raymond and Raymond Lifestyle will be the two listed entities of the group.

While Raymond's revenue from the lifestyle business was down 8%, with textiles taking an 18% hit during the first quarter of the current financial year, the company anticipates a 15% year-on-year revenue growth. "The idea is to grow the top line at 15% and Ebitda at 20% year-on-year," Managing Director Gautam Hari Singhania told NDTV Profit's Sajeet Manghat.

The Mumbai-based firm aims to open 800–900 new apparel and textile stores over the next three years, with its ethnic clothing brand, Ethnix, set to launch nearly 100 new stores this year alone. "We are very bullish in this space, we have a lot of growth opportunities and that's what we are focusing on," Singhania added.

Raymond has also announced a vertical split to demerge its real-estate business.

The demerger plan aims to exploit the growth potential of the real estate business and attract a fresh set of investors and strategic partners to participate in it, Raymond said. The current promoter ownership of the Mumbai-based garment maker is 49.01%.