Finshots Daily Breaking down Raymond’s break up
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Dec 7, 2024 Discover the intriguing ins and outs of Raymond's strategic demerger. This decision could pave the way for greater value unlocked across its lifestyle, real estate, and engineering businesses. The podcast delves into the rationale behind this move, exploring its financial implications and potential advantages for investors. Tune in to understand how this shift might reshape the future of the company.
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Raymond's Diverse Holdings
- Raymond, known for textiles, is also in engineering and real estate.
- The company is demerging these businesses into separate entities for clarity and growth.
The Conglomerate Curse
- Managing diverse businesses under one roof is challenging, leading to undervaluation.
- Demerging allows each business to get focused attention and attract appropriate investors.
Demerger Trend
- Several companies like Borosil and TVS Holdings have also demerged.
- Post-demerger, their combined market value surged by 14% to 450%, according to an ET study.