Raymond approves Rs 800 crore IPO of subsidiary JK Files & Engineering

Branded fabric and fashion retailer Raymond is planning to list its material subsidiary JK Files & Engineering as it approved an initial public offering of its subsidiary on December 1.

The company aims to mobilise Rs 800 crore through its subsidiary’s IPO.

“”The board of directors of JK Files & Engineering (JKFEL), a wholly-owned material subsidiary of Raymond, on November 30, approved an initial public offer (IPO) comprising of an offer for sale (OFS) for Rs 800 crore,” said the company in its BSE filing.

The company further said the IPO would not have any fresh issue of shares and would be undertaken subject to requisite regulatory approvals and market conditions.

“The IPO of its subsidiary will help deleverage Raymond,” said the company. “The shareholding of the company in JKFEL shall stand reduced by such number of shares as may be tendered for sale in the OFS.”

Post-IPO, Raymond said JKFEL would continue to remain its material subsidiary.

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