Raymond’s board approves JK Files & Engineering’s Rs 800 crore IPO
Diversified Group Raymond Ltd announced on Wednesday that its board of directors has approved the listing of its subsidiary JK Files & Engineering Ltd (JKFEL), an auto components manufacturer.Raymond, the country’s top fabric and garment manufacturer, said in a statement that the initial public offering (IPO) will also include an offer-for-sale (OFS) of Rs 800 crore.
Furthermore, the IPO would not involve any new share issuance and will be subject to regulatory clearances and market conditions, according to the company.
“We thus tell you that at its meeting held on November 30, 2021, the board of directors of JKFEL, a wholly-owned material subsidiary of Raymond Ltd, approved an IPO consisting of an OFS for Rs 800 crore, subject to such variations as permissible under relevant law,” it stated.
It went on to say that the company’s board of directors approved the OFS for Rs 800 crore at its meeting on Wednesday, subject to such variations as permitted by relevant legislation in the IPO through book building procedure, which will enable Raymond Ltd de-leverage.
The company’s stake in JKFEL will be lowered to the extent that shares are submitted for sale in the OFS.”However, JKFEL shall continue to be a substantial subsidiary of the company following the IPO,” it stated. Raymond also stated that it will keep the stock markets updated on any developments.The Gautam Hari Singhania-led group had announced the consolidation of its car and engineering operations as part of a restructuring process earlier in September.
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