Raymond Lifestyle, a spinoff from the nearly century-old Raymond company, made its stock market debut on September 5, 2024. The company, which houses the group's core suits and shirts business, achieved an initial valuation of $2.19 billion upon listing.
The listing price was determined through a market discovery process, resulting in a value of 3,020 rupees per share. This exceeded analyst expectations, which ranged from 2,150 to 2,930 rupees. However, shortly after the debut, shares fell by the maximum allowed 5% to 2,869 rupees, as investors engaged in profit booking.
Raymond, founded in 1925, initiated the spinoff of its lifestyle business earlier in 2024 to streamline its group structure and attract more investors. This strategic move aimed to provide the newly formed entity with improved access to capital. Shareholders received four shares of Raymond Lifestyle for every five held in the parent company.
"The listed price is above expectations. Raymond has a very good brand strength. It has created strong wealth creation by unlocking the value of lifestyle business."
Raymond Lifestyle's business portfolio includes well-known clothing labels such as ColorPlus and manufactures menswear for global brands. The company's revenue for the year ending March 2024 reached 70 billion rupees, nearly triple the combined revenue of its parent's engineering and real estate divisions.
Looking ahead, Raymond projects ambitious growth for its lifestyle business over the next three years (2024-2027). The company anticipates sales growth of 12-15% and expects core earnings to double to over 20 billion rupees, according to finance chief Amit Agarwal.
Raymond has a rich history in India's textile and apparel industry. The company introduced ready-to-wear garments to the Indian market in the 1980s and owns one of the world's largest integrated textile manufacturing facilities. With a presence in over 55 countries, Raymond has established itself as a global brand.
The spinoff and subsequent listing of Raymond Lifestyle mark a significant milestone in the company's evolution. As the newly independent entity navigates the stock market, investors and analysts will closely monitor its performance and growth trajectory in the coming years.