Raymond Ltd Approves Demerger of Real Estate Business to Unlock Growth Potential
Raymond Ltd's board has approved the demerger of its real estate business, Raymond Realty Ltd, to attract new investors and strategic partners.
Real Estate BusinessDemergerRaymond LtdRaymond Realty LtdShareholder ValueReal Estate MumbaiJul 04, 2024
As per the demerger terms, shareholders of Raymond Ltd will receive one equity share of Raymond Realty for every share of Raymond. The demerged entity will be listed on the Bombay Stock Exchange and National Stock Exchange. This move comes as Raymond's real estate business has achieved scale, reporting revenue of Rs 1,593 crore, a growth of 43% year-over-year.
Raymond Realty has a significant land bank of 100 acres in Thane, of which about 40 acres is currently under development. The company has five ongoing projects worth Rs 9,000 crore on its Thane land, with an additional potential to generate more than Rs 16,000 crore, making a total potential revenue of over Rs 25,000 crore from this land bank.
In addition to its Thane projects, Raymond Realty has also launched its first joint development agreement project (JDA) at Bandra in Mumbai. The company has signed three new agreements in Mahim, Sion, and one more in Bandra East, Mumbai, taking the combined revenue potential from four JDA projects in the Mumbai Metropolitan Region to over Rs 7,000 crore.
According to Gautam Hari Singhania, Chairman-cum-Managing Director, Raymond Limited, \
Frequently Asked Questions
What is the purpose of the demerger of Raymond Realty Ltd?
The demerger aims to unlock the growth potential of the real estate business and attract a fresh set of investors and strategic partners.
What is the revenue potential of Raymond Realty's Thane land bank?
The total potential revenue from the Thane land bank is over Rs 25,000 crore.
How many JDA projects does Raymond Realty have in the Mumbai Metropolitan Region?
Raymond Realty has four JDA projects in the Mumbai Metropolitan Region, with a combined revenue potential of over Rs 7,000 crore.
What is the expected benefit of the demerger for shareholders?
The demerger is expected to create significant value for shareholders and position Raymond Realty as a major player in the Indian real estate industry.
What are the three vectors of growth for the Raymond group?
The three vectors of growth for the Raymond group are Lifestyle, Real Estate, and Engineering.
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