Raymond limited plans to raise Rs 40 crore
Textiles and fashion business Raymond Limited announced on November 26 that its committee of directors has given the green light to raise Rs 40 crore ($6 million).
Following the approval by Raymond Limited’s committee of directors, the business will proceed to raise funds through private placement of non-convertible debentures. These are tools used by companies to raise long-term funds through a public issue.
“The debentures are proposed to be listed on the Wholesale Debt Market segment of the National Stock Exchange of India Ltd,” said the business in a statement, the Press Trust of India reported.
For the sale, Raymond has allotted 400 secured listed rated redeemable non-convertible debentures with a face value of Rs 10,000 each at par, according to regulatory filings accessed by the Press Trust of India.
The move comes after Raymond reported a consolidated net loss of Rs 137 crore ($18.5 million) in the second quarter of its financial year, which ended in September, 2020. In the same time period a year before, it had reported a profit of Rs 86 crore.
The business had been hit hard by the coronavirus pandemic, especially during the pan-India lockdown when its textiles factories were shut. This was the major contributor to Raymond’s net loss in the previous quarter.
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