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.
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