Raymond Lifestyle, a demerged retail & lifestyle division and also a subsidiary of Raymond Ltd, has made its market debut today by listing on NSE and BSE around Rs. 3000, premium of 90% and garnering a valuation of approx Rs 18,300 crores. The stock is listed in the 'T' Group, limiting intraday buying and selling. With this listening, it marks the first step in Raymond's scheme of arrangement, which plans to have three separate listed businesses to unlock shareholder value. A separate listing presents significant opportunities if seen through a global lens, particularly in China and Bangladesh and trade pacts with the UK, EU, and Australia. The company (lifestyle) was demerged from the parent company in June and as per scheme of arrangement, share swap ratio of 4:5, meaning four shares of Raymond Lifestyle were given for every five shares held in Raymond.
RLL has a legacy collection of well-established brands such as Park Avenue, Raymond, Parx, Ethnics by Raymond, and ColorPlus, yet it has remained underpenetrated with total Exclusive Brand Outlets (EBOs) of 424 as of 1QFY25 end.
Raymond Ltd chairman and MD, Gautam Singhania during media talks said he is receiving massive enquiries for garment supply following the political crisis in Bangladesh. Last year the company has invested over Rs 200 crore to increase its capacity. At the end of FY24, Raymond Lifestyle Ltd had a net cash surplus of Rs 227 crores and the company aims to have free cash generation of Rs 600-700 crore every year. The company is always looking out for acquisitions and intends to use cash judiciously.
Over the next three years, Raymond Lifestyle plans to expand its store network by 900 new outlets. Raymond is looking to speed up the rollout of its "Ethnix by Raymond" brand to a total of 350+ stores from the existing 114 stores.
The management of Raymond's in their guidance is targeting revenue growth of 12-15% growth between FY24-FY28 to attain around 7% market share in the fast-growing men's-wear wedding market, and doubling its EBITDA to over Rs. 2,000 crores by FY28 and expanding EBITDA margin from 9.7% pre-Covid to 15.9% in FY24.
Raymond lifestyle hit the 5% lower circuit limit as investors looked for profit booking, while shares of Raymond Ltd also fell around 2%.
