Raymond to Unlock Real Estate Potential with Demerger and Listing
Raymond's board approves demerger of real estate business, aiming to exploit growth potential and attract fresh investors
Real EstateDemergerListingRaymond LtdRaymond RealtyReal EstateJul 04, 2024
Gautam Singhania, MD of Raymond Ltd, stated that this move is another step to enhance shareholder value by creating a separate listed entity focused on real estate. The demerger will allow Raymond Realty to operate independently, with its own management team and investment strategies tailored to the sector's unique dynamics.
The standalone operational revenue of the real estate division stood at ₹1,592.65 crore in the last fiscal, accounting for 24% of Raymond Ltd's total revenue. The new entity will have a significant land bank, with around 100 acres of land in Thane and five ongoing projects worth ₹9,000 crore, with an additional potential to generate more than ₹16,000 crore.
Raymond Realty has also launched its first Joint Development Agreement (JDA) project in Bandra, Mumbai, and has signed three new JDAs in Mahim, Sion, and Bandra East, taking the combined revenue potential from four JDA projects in the Mumbai Metropolitan Region to over ₹7,000 crore.
The demerger aligns with Raymond Group's objectives of simplifying its corporate structure and enhancing shareholder value. Each Raymond Ltd shareholder will receive one share of Raymond Realty for every one share held in Raymond Ltd, subject to the requisite approvals and sanction of the National Company Law Tribunal (NCLT) and other competent authorities.
information Raymond Limited is a leading Indian textile, apparel, and real estate company with a strong presence in the domestic market. The company has been steadily expanding its real estate business, with a focus on developing high-quality residential and commercial projects.
Raymond Ltd is a part of the Raymond Group, which has a rich history of over 90 years. The group has a diversified presence across textiles, apparel, real estate, and engineering, with a commitment to quality, innovation, and customer satisfaction.
Frequently Asked Questions
Why is Raymond demerging its real estate business?
To unlock the growth potential of the real estate business and attract fresh investors to participate in the sector.
What is the standalone operational revenue of Raymond's real estate division?
₹1,592.65 crore in the last fiscal, accounting for 24% of Raymond Ltd's total revenue.
How many acres of land does Raymond Realty have in Thane?
Around 100 acres of land in Thane with around 11.4 mn sq ft RERA approved carpet area.
What is the revenue potential from Raymond Realty's Thane land bank?
Over ₹25,000 crore from this land bank, with an additional potential to generate more than ₹16,000 crore.
What is the ratio of shares that Raymond Ltd shareholders will receive in Raymond Realty?
One share of Raymond Realty for every one share held in Raymond Ltd, subject to the requisite approvals.
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