Brands like Park Avenue, Kamasutra to now become part of Godrej Consumer Products

The deal will strengthen GCPL's presence in the men's grooming segments and mark its presence in the fragrances and sexual wellness categories.

GCPL operates in the hair care, home care and personal care categries.

"These categories have the potential to deliver double-digit multi-decade growth given the low percapita consumption in India compared to similar emerging markets," MD & CEO of GCPL, Sudhir Sitapati was quoted as saying. " We look forward to building on this potential by unlocking the significant integration synergies with our business,” he said.

Raymond has demerged its lifestyle business to Raymond Consumer Care to create a listed entity with pure play B2C focused lifestyle business and enables it to be net debt free.

The demerged entity has sold its FMCG business to GCPL.

Post the sale of the lifestyle business, the promoter will deploy the entire proceeds of this transaction into this lifestyle business.

With this transaction, Raymond will now be a pure play realty business listed entity along with investments in engineering and the denim business.

Raymond and Raymond Lifestyle will be the two listed entities of the group.

Shareholders of Raymond will get four shares of the demerged entity for every five shares based on the swap ratio.

Sitapati, the GCPL CEO further said that the deal will get Earnings per Share accretive pretty soon. Explaining the rationale behind the deal, Sitapati said that GCPL has distribution capabilities 4 times of Raymond Consumer.

Shares of Raymond ended 6.1 percent higher at Rs 1,711, while those of GCPL ended 2.2 percent lower at Rs 954.80.