Nifty 17938.4 (-0.96%)
Sensex 60098.82 (-1.08%)
Nifty Bank 38041.35 (-0.44%)
Nifty IT 37281.7 (-2.13%)
Nifty Financial Services 18269.95 (-1.08%)
Adani Ports 744.20 (-2.46%)
Asian Paints 3280.40 (-2.77%)
Axis Bank 729.60 (0.61%)
B P C L 394.35 (-0.94%)
Bajaj Auto 3436.80 (1.05%)
Bajaj Finance 7571.80 (-2.22%)
Bajaj Finserv 18077.30 (-0.42%)
Bharti Airtel 703.70 (-1.49%)
Britannia Inds. 3575.65 (-1.28%)
Cipla 895.65 (-0.72%)
Coal India 163.90 (1.93%)
Divis Lab. 4481.50 (-1.01%)
Dr Reddys Labs 4684.95 (-0.18%)
Eicher Motors 2718.70 (-0.64%)
Grasim Inds 1806.50 (-2.47%)
H D F C 2620.25 (-1.59%)
HCL Technologies 1199.20 (-1.68%)
HDFC Bank 1518.45 (-0.71%)
HDFC Life Insur. 656.05 (-1.95%)
Hero Motocorp 2699.80 (0.26%)
Hind. Unilever 2309.90 (-2.52%)
Hindalco Inds. 504.80 (1.77%)
I O C L 125.10 (0.93%)
ICICI Bank 808.60 (-1.76%)
IndusInd Bank 893.25 (-0.71%)
Infosys 1867.05 (-2.80%)
ITC 220.35 (-0.18%)
JSW Steel 674.65 (-0.82%)
Kotak Mah. Bank 1905.65 (-1.88%)
Larsen & Toubro 2020.90 (-0.06%)
M & M 894.40 (0.25%)
Maruti Suzuki 8015.70 (1.27%)
Nestle India 18937.00 (-2.28%)
NTPC 134.80 (-0.15%)
O N G C 170.25 (3.91%)
Power Grid Corpn 204.65 (-0.24%)
Reliance Industr 2521.60 (-0.01%)
SBI Life Insuran 1248.10 (-1.41%)
Shree Cement 26402.25 (-2.77%)
St Bk of India 515.80 (1.78%)
Sun Pharma.Inds. 838.50 (-0.97%)
Tata Consumer 717.65 (-1.89%)
Tata Motors 520.85 (1.97%)
Tata Steel 1209.60 (1.23%)
TCS 3914.65 (-1.90%)
Tech Mahindra 1670.10 (0.56%)
Titan Company 2588.90 (-0.45%)
UltraTech Cem. 7434.40 (-1.61%)
UPL 813.25 (1.77%)
Wipro 621.15 (-1.92%)

Raymond Subsidiary JKFEL to File for Rs.800 crore IPO

Raymond Subsidiary JKFEL to File for Rs.800 crore IPO
IPO
by 5paisa Research Team 02/12/2021

Raymond Ltd, the group that straddles textiles, retail and realty, has approved the listing of its subsidiary JK Files and Engineering Ltd (JKEFL). Accordingly, the subsidiary of Raymond will be listed through an offer for sale, which his expected to be worth Rs.800 crore. JK Files and Engineering Ltd (JKEFL) is into the manufacture of automobile parts and ancillaries.

The proposed offer for sale will be worth Rs.800 crore and there will be no fresh funds coming into JK Files and Engineering Ltd (JKEFL). The funds would accrue directly to Raymond Ltd for diluting its stake in the subsidiary. Raymond is in the midst of a major deleveraging exercise and the infusion of funds from this IPO will help give a push to its deleveraging plans.

As a result of the stake sale through the OFS route, the stake held by Raymond Ltd in JK Files and Engineering Ltd (JKEFL) will reduce proportionately as the public shareholding will increase. However, Raymond has clarified that the auto parts business would continue to be a significant subsidiary of Raymond, which means at any point the parent plans to hold well above 51% stake in the auto parts unit.

The chairman of the Raymond group, Gautam Hari Singhania, had already mentioned that the group would look to monetize some of its assets and holdings to deleverage the group.

The stake sale would also be used to arrive at a valuation of the auto business so that the company can look to induct a major strategic partner at a future deal. This would be the base for such long term plans.

While the Board of Raymond has already approved this sale of stake, other regulatory approvals and the approval of shareholders is still pending. Raymond stock has rallied sharply in the last few days and had rallied more than 33% in a short span of time.

The stock has normally been a slow performer in the market and only moves in spurts. The restructuring plan appears to have a struck a chord with the investors.

Also Read:-

Upcoming IPOs in 2021

Upcoming IPOs in December 2021

About the Author

Open Demat Account

Enter Mobile Number
Enter correct otp
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
SENSEX
60,098.82
-656.04 (-1.08%)
Nifty 50
17,938.40
-174.65 (-0.96%)
Nifty Bank
38,041.35
-168.95 (-0.44%)
Next Article

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number

Stocks Directory

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z All 0-9