Raymond Unlocks Real Estate Potential with Demerger and Listing
Raymond Ltd is set to demerge its real estate business, listing it on exchanges to unlock value for shareholders and harness growth potential in the Indian property market.
Real EstateDemergerListingRaymond LtdProperty MarketReal Estate MumbaiJul 04, 2024
Each shareholder of Raymond Ltd will receive one share of Raymond Realty for every one share held in Raymond Ltd. The real estate division's standalone operational revenue stood at Rs 1,592.65 crore in the last fiscal, accounting for 24% of Raymond Ltd's total revenue.
The demerger is subject to requisite approvals and sanction from the National Company Law Tribunal (NCLT) and approval from shareholders and/or creditors, central government, or other competent authorities. Upon the scheme coming into effect, Raymond Realty will issue 6,65,73,731 equity shares of Rs 10 each to the equity shareholders of Raymond Ltd.
The shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). The company aims to reorganize its real estate business and attract fresh investors and strategic partners.
Raymond Realty has around 100 acres of land in Thane with approximately 11.4 million sq ft of RERA-approved carpet area, of which about 40 acres is currently under development. The company has 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 (JDA) project in Bandra, Mumbai. Additionally, the company has signed three new JDAs 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.
The development of Thane Land Bank and the current 4 JDAs gives a potential revenue of Rs 32,000 crore to the company. According to Gautam Hari Singhania, Chairman cum Managing Director of Raymond Ltd, the demerger is a strategic move to create shareholder value.
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Frequently Asked Questions
What is the purpose of Raymond Ltd's demerger of its real estate business?
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's Thane land bank?
The total potential revenue from the Thane land bank is over Rs 25,000 crore.
How many JDAs has Raymond Realty signed in Mumbai?
Raymond Realty has signed four JDAs in the Mumbai Metropolitan Region, with a combined revenue potential of over Rs 7,000 crore.
What is the ratio of shareholding in Raymond Ltd to Raymond Realty?
Each shareholder of Raymond Ltd will receive one share of Raymond Realty for every one share held in Raymond Ltd.
What is the listed entity's position in the Indian textile industry?
Raymond Ltd is India's largest integrated worsted suiting manufacturer, offering end-to-end solutions for fabric and garmenting.
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