Raymond Unleashes Real Estate Potential with Demerger of Raymond Realty
Raymond Realty, a subsidiary of Raymond, announces its demerger, paving the way for a separate listed entity. With a strong land bank and JDA projects, the company targets Rs 32,000 crore revenue potential.
Raymond RealtyReal EstateMumbaiDemergerJda ProjectsReal Estate MumbaiJul 04, 2024
The decision to demerge the Real Estate Business comes after it has achieved significant scale, reporting revenue of Rs 1,593 crore, a 43% year-over-year growth, and EBITDA of Rs 370 crore in FY24. This growth trajectory has positioned the business well to chart its own path as a separate entity.
Raymond Realty boasts an impressive land bank of approximately 100 acres in Thane, with a RERA-approved carpet area of around 11.4 million square feet. Of this, about 40 acres is currently under development. The company has five ongoing projects worth Rs 9,000 crore on its Thane land, with the potential to generate more than Rs 16,000 crore, making a total potential revenue of over Rs 25,000 crore from this land bank.
In addition to its Thane land bank, Raymond Realty has adopted an asset-light model, which has enabled it to launch its first Joint Development Agreement (JDA) project in Bandra, Mumbai. The company has also signed three new JDAs in Mahim, Sion, and Bandra East, Mumbai, taking the combined revenue potential from these four JDA projects in the Mumbai Metropolitan Region to over Rs 7,000 crore. With the development of its Thane Land Bank and the four JDA projects, Raymond Realty is poised to achieve a revenue potential of Rs 32,000 crore.
Information
Raymond is a leading Indian textile and apparel company with a strong presence in the real estate sector. The company's Real Estate Business has been a significant contributor to its growth, and the demerger of Raymond Realty is expected to unlock further value for shareholders.
Raymond Limited is a leading Indian textile and apparel company with a diversified portfolio of businesses, including textiles, apparel, and real estate. The company has a strong presence in the Indian market and is known for its high-quality products and services.
Frequently Asked Questions
What is the purpose of Raymond's demerger of its Real Estate Business?
The demerger is aimed at unlocking value for shareholders and enabling the Real Estate Business to operate as a separate listed entity, charting its own growth path.
How much revenue potential does Raymond Realty's Thane land bank have?
The Thane land bank has a revenue potential of over Rs 25,000 crore.
What is the significance of Raymond Realty's JDA projects in Mumbai?
The four JDA projects in the Mumbai Metropolitan Region have a combined revenue potential of over Rs 7,000 crore, adding to the company's overall revenue potential.
How will the demerger of Raymond Realty benefit shareholders?
Shareholders will receive 1 share of Raymond Realty for every 1 share held in Raymond, enabling them to hold shares in a separate listed entity with a strong growth potential.
What is Raymond Realty's current project portfolio?
The company has five ongoing projects worth Rs 9,000 crore on its Thane land, in addition to four JDA projects in the Mumbai Metropolitan Region.
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