Raymond Ltd said on Wednesday that its board approved the listing of its subsidiary JK Files Engineering Ltd. JKFEL, a company that is in the business of auto parts.
The country's leading fabric and apparel manufacturer Raymond said that the initial public offering IPO will also comprise an offer-for-sale OFS of 800 crore.
The IPO will not have any fresh issuance of shares and will be subject to regulatory approvals and market conditions, it added.
The board of directors of JKFEL, a wholly owned material subsidiary of Raymond Ltd, approved an IPO comprising an OFS of Rs 800 crore, subject to such variation as permitted under applicable law, it said.
The board of directors of the company, at its meeting held on Wednesday, approved the OFS for Rs 800 crore, subject to such variation as permitted under applicable law in the IPO through book building process, which will help de-leverage Raymond Ltd.
The number of shares that can be offered for sale in the OFS will reduce the company's shareholding in JKFEL.
After the IPO, JKFEL will continue to be a material subsidiary of the company, it said.
Raymond will keep the stock exchanges informed of any developments in this regard.
The group informed the Gautam Hari Singhania-led group about the consolidation of its auto and engineering businesses earlier in September, as part of a restructuring exercise.