Raymond Realty Launches New Subsidiary to Boost Real Estate Projects

Raymond Realty, a prominent player in India's real estate sector, has announced a strategic move to incorporate a wholly owned subsidiary named Chembur Realty Limited (CRL). This decision, approved by the company's Board of Directors, aims to explore new real estate projects, with a particular focus on the redevelopment model, while also mitigating project-specific risks.

The new subsidiary, Chembur Realty Limited (CRL), will be incorporated in Maharashtra with an authorized share capital of Rs. 1,00,000 (10,000 equity shares of Rs. 10 each). The initial subscription will be 1,000 equity shares worth Rs. 10,000 in cash. CRL will be 100% owned by Raymond Realty and will operate in the real estate industry with a primary focus on redevelopment projects.

The incorporation of CRL represents a significant step in Raymond Realty's growth strategy. By establishing this subsidiary, the company aims to:

1. Expand Project Portfolio : CRL will focus on exploring and undertaking new real estate projects, particularly in the redevelopment sector. 2. Risk Mitigation : The subsidiary structure allows Raymond Realty to manage project-specific risks more effectively. 3. Market Positioning : This move could strengthen Raymond Realty's position in the competitive Maharashtra real estate market.

Raymond Realty has informed the National Stock Exchange of India Limited (NSE) and BSE Limited about this development, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As the Indian real estate market continues to evolve, Raymond Realty's strategic expansion through CRL could potentially open up new avenues for growth and diversification. The focus on redevelopment projects, in particular, aligns with the current trends in urban real estate, where revitalizing existing properties is becoming increasingly important.

Investors and market watchers will likely keep a close eye on how this new subsidiary performs and contributes to Raymond Realty's overall business strategy in the coming months.

In a related development, Raymond Realty has also successfully completed an income tax survey conducted under Section 133A of the Income Tax Act, 1961. The company extended full cooperation to the tax authorities throughout the process, which began on September 26 and was completed the following day. Raymond Realty promptly informed the NSE and BSE about the survey's completion, in compliance with SEBI regulations.

The company's proactive approach in cooperating with the tax authorities and promptly informing the stock exchanges may help maintain investor confidence. As the real estate sector continues to be a key focus area for regulatory bodies, Raymond Realty's transparent handling of the income tax survey sets a positive example for corporate governance in the industry.