Raymond shares fell over 8% in early trade on Wednesday after the company approved a preferential issue of convertible warrants to raise around Rs 214.71 crore. The stock was trading at Rs 785.3 on the NSE around 9:41 am, down 8.49% from its previous close of Rs 857.8.
The fundraise, approved by Raymond's board on September 8, will be made to Minerva Ventures Fund, subject to shareholder and regulatory approvals.
Raymond To Raise Rs 214.71 Crore
The preferential issue will be made on a private placement basis to Minerva Ventures Fund, which is the sole proposed allottee. The fund will receive 33,28,686 warrants under the proposed transaction.
According to the company's disclosure, the warrants will be issued for cash at Rs 645 apiece, including a premium of Rs 635 per warrant. The total consideration is estimated at up to around Rs 214.71 crore.
The proposed issue also means potential equity dilution for existing shareholders if the warrants are converted into shares. On a fully diluted basis, assuming full conversion of the proposed as well as existing outstanding warrants, Minerva Ventures Fund would hold 4.35% of Raymond following the preferential issue.
What Happens To The Warrants?
Each warrant can be converted into one equity share, with the conversion allowed in one or more tranches. The conversion period will run for a maximum of 18 months from the date of allotment.
If the warrants are not exercised within the stipulated period, the unconverted warrants will lapse, and the amount paid towards those warrants will be forfeited, according to the company.
The fundraise is subject to approval from Raymond's members as well as other applicable statutory and regulatory approvals. The company disclosed the board's decision to the exchanges on Sept. 8.
Raymond Stock Price Movement
Despite today's sharp fall, the stock is up 19.3% over a week and more than 29% over the past month.
In 2026 so far, the stock has gained more than 87%, while the benchmark index Nifty Smallcap 500 has gained only 8.85%.
Currently, the stock is trading at a price-to-earnings multiple of 89.5 times, with a market cap of Rs 5,228.7 crore on the NSE.
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