Raymond Gets NCLT Nod for Business Realignment; Engineering & Aerospace Units Demerged

Mumbai, July 5, 2025: Raymond Limited (NSE: RAYMOND, BSE: 500330) has secured final approval from the National Company Law Tribunal (NCLT) for its Composite Scheme of Arrangement, aimed at consolidating its engineering business and carving out its aerospace and defence vertical into a separate entity.

NCLT Greenlights Composite Scheme Effective April 1, 2024

In a regulatory filing dated July 4, 2025, Raymond informed exchanges that the NCLT has sanctioned the long-awaited scheme involving:

• Demergers
• Amalgamations
• Capital Reductions

This strategic move is designed to simplify the group structure and unlock value across two high-growth sectors — precision engineering and aerospace manufacturing.

Key Approvals and Structure Changes

Effective Date: April 1, 2024

Valuer: KPMG Valuation Services LLP

Share Exchange Ratios

In addition, Series A and B CCPS were also allotted to promoters of Maini Precision Products as part of the consideration.

Assets and Liabilities Transfer

From JK Files to JK Maini Precision (Engineering Division):

• Total assets: ₹64,893.15 lakh
• Total liabilities: ₹45,877.28 lakh

From JK Maini Precision to JK Maini Global Aerospace (Aerospace Division):

• Total assets: ₹30,113.62 lakh
• Total liabilities: ₹18,880.96 lakh.

Rationale Behind the Scheme

The restructuring aims to:

• Unlock distinct value for engineering and aerospace businesses
• Create investor-focused verticals with strategic clarity
• Streamline operations across subsidiaries
• Improve market positioning and synergy realization across global supply chains

“The reorganisation will enable sharper operational focus and attract domain-specific investments,” the company noted in its petition to NCLT.

Post-Restructuring Entity Structure

Ring Plus Aqua and Maini Precision Products will cease to exist upon implementation of the scheme.

Regulatory & Legal Compliance

• All open charges and tax litigations will be carried over to the transferee entities.
• Creditors’ and tax authorities’ interests are explicitly safeguarded.
• No objections were raised by statutory regulators including the Registrar of Companies, Income Tax Department, or GST authorities.
• Scheme approved under Sections 230-232 and Section 66 of the Companies Act, 2013.

About Raymond Limited

Raymond Ltd is listed on NSE and BSE and operates across textiles, engineering, real estate, and consumer businesses. Through its engineering subsidiaries, Raymond has also developed strategic interests in the aerospace and defence manufacturing sector. The company is actively restructuring to create focused, scalable, and investor-aligned entities across verticals.

REF: https://nsearchives.nseindia.com/corporate/RAYMOND_04072025225202_SEintimationsigned.pdf

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