Raymond Ltd., a nearly 100-year-old Indian conglomerate, plans to float its garment and real estate subsidiaries by the end of 2025 as its founders seek to increase shareholder value.
The group, which oversees a diverse range of businesses from engineering, aerospace, fashion, and real estate, will have three listed entities by next year after Raymond Lifestyle Ltd. begins trading in Mumbai on Thursday and the real estate unit prepares for a 2025 listing, Chairman Gautam Hari Singhania said in an interview.
The goal of this restructuring is to remove Raymond’s conglomerate structure, which has resulted in “subdued valuations” for its businesses, he explained. The parent will keep its engineering and car components divisions. Every investor will receive four Raymond Lifestyle shares for every five Raymond Ltd. shares they own.
The Mumbai-based business group, which began as a wool mill on the city’s outskirts in 1925, is trying to increase shareholder value while also giving them the option of investing only in individual Raymond businesses rather than the entire portfolio.
The parent, whose shares have risen 89% this year, is recovering from a low in November, when Singhania’s contentious divorce from his wife caused investor fear and reduced the company’s market value.
The corporate governance difficulties “are a matter of the past,” Singhania said, adding that the company was moving forward with its expansion ambitions. “Our company is targeting the 400 million middle class of India.”
Raymond Lifestyle, known for its premium suits for men and wedding attire, is looking to expand into the 750 billion rupee ($8.9 billion) menswear market and is banking on India’s large wedding industry to drive the next phase of growth, according to Singhania. Its competitors include Vedant Fashions Ltd., which sells the iconic wedding dress brand Manyavar, and Aditya Birla Fashion and Retail Ltd.
He stated that the apparel unit intends to treble its EBITDA (earnings before interest, tax, depreciation, and amortization) and open 900 new stores by 2028. According to the company’s most recent annual report, it currently has 1,518 outlets in India and 48 internationally in seven countries.
