Raymond Board Approves Amalgamation of Wholly Owned Subsidiary EBAL
Raymond Limited's Board approved the amalgamation of its wholly-owned subsidiary, Ever blue Apparel Limited (EBAL), with RL. The move aims to simplify group structure and integrate garmenting operations. EBAL reported a turnover of ₹10,858 lakhs as of Dec 31, 2025. No new shares will be issued, and no payment will be made to EBAL's shareholders.
The amalgamation is expected to simplify the group structure and create operational efficiencies, which could have a positive long-term impact. However, since it involves a wholly-owned subsidiary and no share issuance or cash consideration, the immediate financial impact is neutral.
The announcement details a corporate restructuring through amalgamation, which is a procedural step. While it aims for operational efficiencies, it does not immediately present a significant positive or negative financial impact.
Raymond Limited's Board of Directors, in a meeting held on January 27, 2026, has approved a Scheme of Amalgamation for Ever blue Apparel Limited (EBAL), a wholly-owned subsidiary, with Raymond Limited (RL).
This amalgamation, proposed under Sections 230 to 232 of the Companies Act, 2013, is subject to approvals from the National Company Law Tribunal (NCLT), shareholders, creditors of RL, and other relevant authorities. EBAL, incorporated on March 14, 2000, is primarily involved in converting denim fabrics into readymade garments. As of December 31, 2025, EBAL had a paid-up capital of ₹1,150 lakhs, net worth of ₹376 lakhs, and a turnover of ₹10,858 lakhs.
Raymond Limited, established on September 10, 1925, has a paid-up capital of ₹6,657 lakhs and a net worth of ₹1,86,146 lakhs as of December 31, 2025, with a turnover of ₹289 lakhs. The rationale behind the amalgamation includes simplifying the group structure, integrating EBAL's garmenting operations directly into RL, optimizing resource utilization, leveraging pooled resources, and achieving operational and financial synergies. Since EBAL is a wholly-owned subsidiary, all its shares held by RL will be cancelled upon the scheme's effectiveness, with no new shares allotted or payment made to EBAL's shareholders. Consequently, there will be no change in Raymond Limited's shareholding pattern.
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Raymond Limited filed this with the NSE as a statutory disclosure, categorised under merger. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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