Raymond Unveils Demerger of Real Estate Business, Eyes Fresh Investors
Raymond Limited's board approves demerger of real estate business to unlock growth potential and attract new investors
Raymond LimitedReal Estate BusinessDemergerListingStock ExchangesInvestorsShareholder ValueGautam SinghaniaReal Estate NewsJul 04, 2024
The demerger will result in the creation of two separate listed entities within the Raymond Group - Raymond Ltd and Raymond Realty Limited. Each shareholder of Raymond Ltd will receive one share of Raymond Realty for every one share held in Raymond Ltd. The standalone operational revenue of the real estate division stood at ₹1,592.65 crore in the last fiscal, accounting for 24% of the total revenue of Raymond Ltd.
Raymond Realty Limited will seek automatic listing on stock exchanges, and the company expects to attract new investors and strategic partners to participate in the real estate business. The real estate business has achieved significant scale, reporting revenue of ₹1,593 crore and EBITDA of ₹370 crore in FY24, positioning it well to chart its own growth path as a separate entity.
Raymond Realty has a significant land bank of around 100 acres in Thane, with a RERA-approved carpet area of 11.4 million sq ft. The company has five ongoing projects worth ₹9,000 crore on its Thane land, with an additional potential to generate more than ₹16,000 crore, making a total potential revenue of over ₹25,000 crore from this land bank.
The demerger aligns with Raymond Group's stated objectives of simplifying its corporate structure and enhancing shareholder value for operational and structural benefits. Leveraging Raymond's institutional strength, the move will allow for independent, dedicated management teams with industry-specific expertise to sharpen business focus and tailor investment strategies to each sector's unique dynamics.
Information
Raymond Limited is a leading Indian conglomerate with a strong presence in the textile, real estate, and engineering sectors.
Raymond Limited is a renowned Indian corporation with a rich history of over 90 years. The company has a diversified portfolio of businesses, including textiles, real estate, and engineering.
Frequently Asked Questions
What is the main objective of Raymond's demerger of its real estate business?
The main objective is to unlock the growth potential of the real estate business and attract fresh investors to participate in the industry.
How will the demerger affect Raymond Ltd's shareholders?
Each shareholder of Raymond Ltd will receive one share of Raymond Realty for every one share held in Raymond Ltd.
What is the revenue potential of Raymond Realty's land bank in Thane?
The total potential revenue from the land bank is over ₹25,000 crore.
What is the significance of the demerger for Raymond Group?
The demerger aligns with Raymond Group's stated objectives of simplifying its corporate structure and enhancing shareholder value for operational and structural benefits.
Who will be the Chairman and Managing Director of Raymond Realty Limited?
Gautam Hari Singhania will be the Chairman and Managing Director of Raymond Realty Limited.
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