Raymond Ltd's Real Estate Business Split Boosts Shares to 52-Week High
Raymond Ltd shares soar 12% after announcing demerger of its Real Estate Business into Raymond Realty Limited, paving way for separate listing.
Raymond LtdReal Estate BusinessDemergerSharesStock MarketMumbaiReal Estate MumbaiJul 05, 2024
The demerger is a significant development for Raymond's Real Estate Business, which has achieved impressive growth, reporting a revenue of INR 1,593 crore in FY24, a 43% year-on-year increase, and an EBITDA of INR 370 crore. Raymond Realty owns approximately 100 acres of land in Thane, with around 11.4 million square feet of RERA-approved carpet area, of which about 40 acres are currently under development. The company has five ongoing projects on this land, worth Rs 9,000 crore, and an additional potential to generate over Rs 16,000 crore, resulting in a total potential revenue of over Rs 25,000 crore from this land bank.
Adopting an asset-light model, Raymond Realty has recently launched its first Joint Development Agreement (JDA) project in Bandra, Mumbai. Additionally, Raymond has signed three new JDAs in Mahim, Sion, and another in Bandra East, Mumbai. These four JDA projects in the Mumbai Metropolitan Region have a combined revenue potential exceeding Rs 7,000 crore. With the Thane Land Bank developments and current JDAs, the company's potential revenue reaches Rs 32,000 crore.
Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited, said, 'Having stated that now we have clear three vectors of growth at Raymond group i.e. Lifestyle, Real Estate and Engineering, this corporate action is in line with creating shareholder value creation. This strategy to demerge the Real Estate business into a separate company that will be listed through automatic route is another step to enhance the shareholder value.'
The existing shareholders of Raymond Limited will receive one share of RRL for each share they hold in Raymond Ltd, providing them with an opportunity to benefit from the growth potential of the Real Estate Business,
Information Raymond Limited is a leading Indian textile and fashion retailer with a presence in over 20 countries. The company has diversified business interests, including real estate, engineering, and lifestyle segments.
Raymond Realty Limited (RRL) is a wholly-owned subsidiary of Raymond Limited, engaged in the development of residential and commercial properties in India.
Frequently Asked Questions
Why did Raymond Ltd's shares surge?
Raymond Ltd's shares surged over 12% after the company announced the demerger of its Real Estate Business into a wholly-owned subsidiary, Raymond Realty Limited.
What is the potential revenue of Raymond Realty's Thane Land Bank developments?
The potential revenue of Raymond Realty's Thane Land Bank developments is over Rs 25,000 crore.
How many Joint Development Agreement (JDA) projects has Raymond Realty signed in Mumbai?
Raymond Realty has signed four Joint Development Agreement (JDA) projects in the Mumbai Metropolitan Region, with a combined revenue potential exceeding Rs 7,000 crore.
What is the ratio of shares that existing shareholders of Raymond Limited will receive in Raymond Realty Limited?
Existing shareholders of Raymond Limited will receive one share of Raymond Realty Limited for each share they hold in Raymond Ltd.
What is the current market value of Raymond Realty's projects in Mumbai?
The current market value of Raymond Realty's projects in Mumbai is worth Rs 9,000 crore, with an additional potential to generate over Rs 16,000 crore.
Related News Articles
Experience Ultra-Luxury with Axis Bank's PRIMUS Credit Card
Discover the exclusive benefits and rewards of Axis Bank's PRIMUS Credit Card, designed for ultra-high net worth individuals.
Shriram Properties to Develop 6-Acre Land in Undri, Pune
Shriram Properties has signed a joint development agreement for a 6-acre land parcel in Undri, Pune. The project, featuring over 650 apartments and retail spaces, is set to be launched in H2 FY 2024-25.
Union Budget 2025-26: How the Rs 12 Lakh Nil Tax Slab Enhances Spending Power for Homebuyers?
The Finance Minister's Union Budget 2025 measures have provided a significant boost to the real estate industry. With the completion of 50,000 housing units under the SWAMIH initiative, homebuyers are set to benefit from increased spending power due to th
Birla Estates Launches 'Birla Punya' in Pune: A Luxurious Rs 2700 Crore Residential Project
Pune, 17th March 2025: Birla Estates Pvt. Ltd., a subsidiary of Aditya Birla Real Estate Limited, has made a grand entry into the Pune real estate market with the launch of 'Birla Punya,' a luxurious residential project worth Rs 2700 crore.
Understanding the Impact of Maharashtra's New Ready Reckoner Rates on Real Estate
Rohit Gera, Managing Director of Gera Developments, discusses the implications of the new ready reckoner rates announced by the Maharashtra government and how they are reshaping the real estate market.
Son of Late Karnataka Don Muthappa Rai Shot at on Bengaluru Outskirts
The son of the late Karnataka don, Muthappa Rai, was shot at on the outskirts of Bengaluru. The police have filed an FIR against real estate businessmen Nitesh Shetty and Vaidyanathan. Following Muthappa Rai's death, his family, which holds a significant amount of real estate in the region, has been involved in several conflicts.