Raymond Realty: Ready to Walk Away from Redevelopment Deals if Not Viable
Raymond Realty, led by CMD Gautam Singhania, emphasizes financial prudence in redevelopment deals, aiming for at least 20% margins. The company is set to list and is expected to have a market capitalization of Rs 8,000 to 12,000 crore.
Real EstateRedevelopmentRaymond RealtyFinancial DisciplineMarket CapitalisationReal EstateJun 30, 2025
Raymond Realty's Managing Director and CEO, Harmohan Sahni, emphasized that the company, which follows a redevelopment-led growth strategy, will seek margins of at least 20 percent from all projects, whether redevelopment or otherwise. “We have very strict financial discipline. I am willing to walk away from a deal if it does not meet our financial parameters. I will do a deal only if it meets my financial return criteria and not because it will be a good fit from the market capitalisation point of view. I am seeing deals that are so heated, that if I were a betting man, there is no way people can make money out of them,” Singhania said, in response to a question on large incentives being offered by developers to secure redevelopment deals in Mumbai.
Raymond Realty possesses a 100-acre land parcel at JK Gram in Thane with a development potential of 11.5 million square feet (msf), of which around 4.5 msf has already been brought to the market. Besides redevelopment, the company has signed six redevelopment deals, mainly in areas around the Bandra Kurla Complex, and is in talks to secure redevelopment projects in other suburbs.
Both Singhania and Sahni did not comment on the expected valuations for Raymond Realty. However, market sources suggest that the real estate arm may list at a market capitalisation of Rs 8,000 crore to Rs 12,000 crore, which can take the total market capitalisation of the Raymond Group to around Rs 20,000 crore.
Sahni added that the company plans to grow its topline by 20 percent annually and aims to add projects with a gross development value of Rs 10,000 crore every year. Contrary to common perceptions, he noted that there is no scarcity of land in the Mumbai metropolitan region. This strategic approach is part of the group's plan to transform into ‘Raymond 2.0’ in its 100th year of existence, as mentioned in a letter to shareholders by Singhania.
Raymond Realty was demerged from Raymond Ltd in May and is scheduled to list on July 1. This demerger and the creation of pure-play companies in apparel, real estate, and engineering services are part of the group's strategy to increase shareholder value. Raymond Lifestyle was demerged and listed separately last year, while the rump Raymond Ltd is expected to represent the group's interest in the engineering, aerospace, and defence businesses.
Frequently Asked Questions
What is Raymond Realty's approach to redevelopment deals?
Raymond Realty aims to maintain strict financial discipline and is willing to walk away from deals if they do not meet internal financial targets, such as achieving at least 20% margins.
What is the expected market capitalisation of Raymond Realty?
Market sources suggest that Raymond Realty may list at a market capitalisation of Rs 8,000 crore to Rs 12,000 crore.
What is the development potential of Raymond Realty's land in Thane?
Raymond Realty possesses a 100-acre land parcel at JK Gram in Thane with a development potential of 11.5 million square feet (msf).
What are Raymond Realty's growth plans?
Raymond Realty plans to grow its topline by 20 percent annually and aims to add projects with a gross development value of Rs 10,000 crore every year.
What is the significance of the demerger of Raymond Realty from Raymond Ltd?
The demerger of Raymond Realty from Raymond Ltd is part of the group's strategy to transform into ‘Raymond 2.0’ and increase shareholder value by creating pure-play companies in various sectors.
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