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The case explores the possible implications of the decision to demerge Raymond Limited by Gautam Singhania, the chairman and managing director (CMD) of Raymond Limited (Raymond). In April 2023, Raymond Limited announced its plan to demerge its lifestyle businesses into Raymond Consumer Care Limited, paving the way for Raymond Limited to become a real estate company. The restructuring was carried out to have two debt-free listed entities in the lifestyle and real estate businesses. This demerger was planned after the company witnessed a turbulent time with a drastic revenue fall and resultant losses due to the COVID-19 pandemic. The case provides students with an opportunity to analyse the financial statements of a listed company affected by a negative macroeconomic event and the financial strategies employed by the company under such circumstances. It also allows the students to analyse the implications of the demerger strategy.
Dhamija et al. (Tue,) studied this question.