Promoter taking additional ~6.5% stake with warrants. 18 month tenure. Total aggregate is 330cr, so 25%*330=82.5 crores cash paid now and the remaining 75% will be paid anytime between date of allotment and 18 months
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In a market where anything linked to aerospace, defence etc is getting crazy multiples. Recently auto ancillary also got rerated as a sector. Promoter is again backing the co while it is trading in a value zone.
Other than the operating business related to engineering in two subsidiaries. There is also locked up value in Raymond’s holding of JK investo Trade(JKIT). Raymond Limited owns 47% of JK Investo and JK Helene Curtis, which owns 18% of Raymond Limited, Raymond Realty and 15% of Raymond Lifestyle. So, Raymond effectively owns 9%, 9% and 7% of these 3 companies. Plus the direct equity stake in lifestyle and realty listed entities now.
Raymond effectively owning 9% of itself is a weird case. If this complex structure gets cleared, further value unlock is possible. (Shareholding percentages taken with approximation)
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Why does Raymond Ltd need cash now, Unless until there are inorganic opportunities, which may not make sense as they already have a good capex planned
Funds to be used mainly for capex and inorganic acqusitions/partnerships.
Looks like some inorganic acquisition opportunity may be on the cards soon.
The independent valuer is valuing the stock at 313.08
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Interesting move - Raymond hires ex-BEL chief Bhanu Prakash to lead defence business
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Raymond appoints ex BEL CMD Bhanu Prakash Srivastava as CEO of Defence vertical.
Press release gives signs of moving up the value chain into electronics, software and system integrations.
Getting an ex PSU CMD will also signal confidence while trying to integrate in indigenous defence programs.
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The earlier fund raise plan - was it already completed?
Yes, the warrant placement was done on 9th July. 25% of the amount (~83 crores) has already been received by the company, with remained expected within 18 months.
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What a surge in volume today, almost 25% equity got traded today. Aero definitely is the main growth driver, and defence could be the next growth lever if executed well.
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Board approval to issue ~33 lakh warrants at 645 per warrant to Minerva Ventures Fund. Total fund raise of ~215 crores.
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Every day big volume with positive closing any specific news or aerospace mfg boom..?
