Raymond Unlocks Real Estate Potential with Demerger and Listing Plans
Textile major Raymond Ltd to demerge real estate business, listing it on exchanges to unlock value for shareholders and harness growth potential in Indian property market.
Real EstateDemergerListingRaymond LtdIndian Property MarketReal EstateJul 05, 2024
The demerger will result in each Raymond Ltd shareholder receiving one share of Raymond Realty Ltd for every one share held in Raymond Ltd. 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 real estate market, with around 100 acres of land in Thane and approximately 11.4 million sq ft of RERA-approved carpet area. 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.
Raymond Realty has also recently launched its first joint development agreement (JDA) project in Bandra, Mumbai, and has signed three new JDAs in Mahim, Sion, and Bandra East, Mumbai, taking the combined revenue potential from these four JDA projects to over Rs 7,000 crore.
The development of the Thane land bank and the current four 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 part of the company's strategy to create shareholder value and unlock the growth potential of its businesses.\n\nRaymond Ltd is India's largest integrated worsted suiting manufacturer, offering end-to-end solutions for fabric and garmenting. The company has a strong presence in the engineering space, engaged in precision-engineered products, and has a significant retail network with over 1,450 stores across more than 600 towns.
Frequently Asked Questions
What is Raymond Ltd's plan for its real estate business?
Raymond Ltd plans to demerge its real estate business and list it on exchanges to unlock value for shareholders and harness growth potential in the Indian property market.
What is the standalone operational revenue of Raymond Ltd's real estate division?
The standalone operational revenue of Raymond Ltd's real estate division stood at Rs 1,592.65 crore in the last fiscal.
What is the potential revenue of Raymond Realty Ltd's land bank in Thane?
The potential revenue of Raymond Realty Ltd's land bank in Thane is over Rs 25,000 crore.
How many JDA projects has Raymond Realty Ltd signed in the Mumbai Metropolitan Region?
Raymond Realty Ltd has signed four JDA projects in the Mumbai Metropolitan Region, with a combined revenue potential of over Rs 7,000 crore.
What is the benefit of the demerger for Raymond Ltd's shareholders?
The demerger will result in each Raymond Ltd shareholder receiving one share of Raymond Realty Ltd for every one share held in Raymond Ltd, unlocking value for shareholders.
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