Raymond Takes a Strategic Step: Demerges Real Estate Business to Unlock Growth Potential
Raymond Ltd has announced the demerger of its real estate business, Raymond Realty Ltd, to attract fresh investors and unlock growth potential.
Real Estate BusinessRaymond LtdDemergerGrowth PotentialInvestorsReal EstateJul 04, 2024
The demerger plan involves consolidating the entire real estate business of the group under one single entity, Raymond Realty Ltd. 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.
Raymond Realty has achieved significant scale, reporting a revenue of Rs 1,593 crore, a 43% year-on-year growth. The company has 100 acres of land in Thane, of which about 40 acres is currently under development. There are 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.
Recently, Raymond Realty launched its first joint development agreement project (JDA) at Bandra in Mumbai. Additionally, 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.
Gautam Hari Singhania, Chairman-cum-Managing Director, Raymond Limited, said, '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.'
Information
Raymond Ltd is a leading textiles and apparel company with a diverse portfolio of brands, including Raymond, Park Avenue, and ColorPlus. The company has a strong presence in the Indian market and has been expanding its business into new areas, including real estate.
Raymond Ltd is a leading textiles and apparel company with a rich history of over 90 years. The company has a strong presence in the Indian market and has been expanding its business into new areas, including real estate. With a diverse portfolio of brands, including Raymond, Park Avenue, and ColorPlus, the company is committed to delivering high-quality products and services to its customers.
Frequently Asked Questions
What is the demerger plan of Raymond Ltd?
The demerger plan involves consolidating the entire real estate business of the group under one single entity, Raymond Realty Ltd.
What is the expected revenue potential of Raymond Realty's Thane land?
The expected revenue potential of Raymond Realty's Thane land is over Rs 25,000 crore.
What is the joint development agreement project (JDA) launched by Raymond Realty?
The JDA project launched by Raymond Realty is at Bandra in Mumbai.
What is the combined revenue potential of Raymond Realty's four JDA projects in the Mumbai Metropolitan Region?
The combined revenue potential of Raymond Realty's four JDA projects in the Mumbai Metropolitan Region is over Rs 7,000 crore.
What is the goal of the demerger, according to Gautam Hari Singhania, Chairman-cum-Managing Director, Raymond Limited?
The goal of the demerger is to create shareholder value and unlock growth potential.
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