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