Raymond to Unlock Shareholder Value by Demerging Real Estate Business
Raymond Ltd will demerge its real estate business to unlock value for shareholders and harness growth potential in the Indian property market.
Real EstateDemergerShareholder ValueRaymond LtdIndian Property MarketReal Estate NewsJul 05, 2024
The demerger aims to reorganize the real estate business carried out by Raymond Ltd and its subsidiaries. The standalone operational revenue of the real estate division stood at Rs 1,592.65 crore in the last fiscal, accounting for 24% of the total revenue of Raymond Ltd. The new entity, Raymond Realty Ltd, will have a significant presence in the Indian property market, with around 100 acres of land in Thane and a potential revenue of over Rs 32,000 crore.
The demerger is subject to the requisite approvals and sanction of the National Company Law Tribunal (NCLT) and the approval of shareholders and/or creditors, central government, or such other competent authority as may be directed by the NCLT. Upon the scheme coming into effect, Raymond Realty Ltd will issue 6,65,73,731 equity shares to the equity shareholders of Raymond Ltd, which will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).
Raymond Ltd's Chairman cum Managing Director, Gautam Hari Singhania, stated that the demerger is in line with creating shareholder value and will provide a clear growth path for the real estate business. The existing shareholders of Raymond Ltd will receive shares in the new listed real estate company in a ratio of 1 1.
Raymond Ltd is India's largest integrated worsted suiting manufacturer, offering end-to-end solutions for fabric and garmenting. The company has a significant presence in the engineering space, engaged in precision-engineered products with a national and international presence.
Raymond Ltd is a leading textile major with a rich history of over 90 years. The company has a diversified business portfolio, including textiles, apparel, and engineering. Raymond Ltd has a significant presence in the Indian market, with a strong brand presence and a large exclusive retail network.
Raymond Ltd is a leading Indian textile major with a rich history of over 90 years. The company has a diversified business portfolio, including textiles, apparel, and engineering.
Frequently Asked Questions
What is the purpose of the demerger?
The demerger aims to unlock value for shareholders and harness growth potential in the Indian property market.
What is the revenue potential of Raymond Realty Ltd?
The revenue potential of Raymond Realty Ltd is over Rs 32,000 crore.
What is the share ratio for existing shareholders of Raymond Ltd?
The existing shareholders of Raymond Ltd will receive shares in the new listed real estate company in a ratio of 1:1.
What is the listing status of Raymond Realty Ltd?
Raymond Realty Ltd will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).
What is the significance of the demerger for Raymond Ltd?
The demerger is in line with creating shareholder value and will provide a clear growth path for the real estate business.
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