Mumbai, June 10: The shareholders of Raymond Ltd today approved the company’s plan to borrow up to Rs 1,000 crore and raise Rs 175 crore through the issue of debentures.
The proposals were approved at the company’s 89th annual general meeting.
According to Section 180(1)(C) of the Companies Act, 2013, companies are allowed to borrow money in excess of its paid-up capital and free reserves (apart from loans obtained from banks) through a special resolution of the shareholders.
Raymond told its shareholders the proposal to raise up to Rs 175 crore through non-convertible debentures was only an enabling resolution.
The company informed the bourses today that its shareholders gave their approval to various resolutions through a requisite majority.
In the previous fiscal, the company posted a 7 per cent growth in gross revenues on a standalone basis at nearly Rs 2,186 crore against Rs 2,035 crore the year before.
Net profit stood at Rs 88 crore against a loss of Rs 47.84 crore in the previous fiscal.
In the fourth quarter ended March 31, sales in the textile segment witnessed a 4 per cent growth on higher realisation in both domestic and export segments. The apparel segment grew 21 per cent at Rs 234 crore. Total sales through the exclusive retail network grew 16 per cent over the same period of the previous year.