This small-cap company which is a leading manufacturer of fabrics, clothing and has interests/ businesses in other segments, has given nod to invest up to 310 Cr in its step down wholly owned subsidiary.
At 9:30 a.m the shares of Raymond were trading at Rs. 1810 and the market capitalization of the company is 11,890 Cr.
As per the company’s filing, the board of directors of Raymond have approved to invest upto 301 Cr in one or more trenches in Ten X Realty Limited(TXRL), a step down wholly owned subsidiary of the Company. Out of the said investment the company will invest upto 125 Cr in the form of Redeemable Preference Shares and the balance 176 Crore will be invested by providing Inter Corporate Deposit to TXRL.
The object of the Investment in Redeemable Preference Shares of TXRL is to provide funding for real estate projects undertaken by TXRL.
The company’s revenue has increased by 32.96 percent from 6,178.51 Cr in FY22 to 8214.72 Cr in FY23, accompanied by increasing profits from 265.12 Cr to 536.96 Cr.
The company has reported a return on equity (ROE) of 20.44 percent and return on capital employed (ROCE) of 21.11 percent, this indicates that the company is making good returns on its equity and making good utilisation of the company’s resources.
According to the latest shareholding data available for the June 2023 quarter, the company’s Promoters hold 49.11 percent stake, the Domestic Institutional Investors hold 5.51 percent and the Foreign Institutional Investors (FII) hold 17.76 percent.
Raymond is a diversified group with majority business interests in Textile & Apparel sectors as well as presence across diverse segments such as FMCG, Realty, Engineering and Prophylactics in national and international markets.
Written by: Bharath K.S
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