The Raymond Board permits the issuance of NCDs of up to Rs 2,200 crore.
The board of Raymond on May 9, 2023 has approved the issuance of Non-Convertible Debentures (NCDs) for an amount up to Rs 2,200 crore in two or more tranches on a private placement basis to its associate company, Raymond Consumer Care, for repayment of external debt, subject to receipt of necessary approvals required under applicable law, it said in a regulatory filing.
The deemed date of allotment is from May 10, 2023 with a tenure for 730 days till May 9, 2025.
The interest offered is at 9 per cent per annum and the NCD’s shall be unsecured, according to the regulatory filing.
In case of default in repayment of interest and/or principal redemption on due dates, additional annual interest of 2 per cent over the coupon rate will be payable by the company for the defaulting period.
The company last month said it would de-merge into two separate listed entities – Raymond and Raymond Consumer Care – to turn net debt free and unlock higher value.
While Raymond would focus only on real estate, engineering and denim production, Raymond Consumer Care would manage its flagship lifestyle business that houses Raymond brand of suits and Parx brand of casual wear.
In its quarterly results update on Tuesday evening, Raymond reported about 10 per cent rise in the fourth quarter (Q4) FY23 revenue to Rs 2,150 crore, with textile sales slightly went up. Meanwhile, the apparel and garment segments saw sales jump of 18.9 per cent and 43.6 per cent, respectively.