Raymond Unveils Demerger of Real Estate Business into Separate Entity
Raymond Limited announces the demerger of its real estate business into a separate listed entity, Raymond Realty Limited, to unlock shareholder value and chart independent growth.
Real EstateRaymond LimitedDemergerShareholder ValueCorporate StructureReal EstateJul 04, 2024
The demerger, once completed, will result in Raymond and Raymond Realty operating as separate listed entities within the Raymond Group, post all statutory approvals. Shareholders of Raymond Limited will receive 1 share of Raymond Realty for every 1 share held in Raymond, as per the scheme of arrangement.
The real estate business has been growing rapidly, with a revenue of ₹1,593 crore in FY24, representing a 43% year-on-year growth, and an EBITDA of ₹370 crore. This momentum is expected to continue, with the business poised to chart its own growth path as a separate entity.
Raymond Realty boasts an impressive land bank of around 100 acres in Thane, with approximately 11.4 million square feet of RERA-approved carpet area. Five ongoing projects worth ₹9,000 crore are currently underway on this land, with an additional potential to generate over ₹16,000 crore, making a total potential revenue of over ₹25,000 crore.
In addition to its Thane land bank, Raymond Realty has also launched its first 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 in the Mumbai Metropolitan Region to over ₹7,000 crore.
According to Gautam Hari Singhania, Chairman and Managing Director, Raymond, 'This demerger is in line with creating shareholder value creation. The strategy to demerge the real estate business into a separate company that will be listed through an automatic route is another step to enhance shareholder value.'
The company believes that the demerger aligns with Raymond Group's stated objectives of simplifying its corporate structure and enhancing shareholder value. By 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.
Raymond is India's largest integrated worsted suiting manufacturer, offering end-to-end solutions for fabric and garmenting. With a portfolio of leading brands, including 'Raymond Ready to Wear', 'Park Avenue', 'ColorPlus', 'Parx', 'Raymond Made to Measure', and 'Ethnix by Raymond', among others, the company has established a strong presence in the market, with over 1,450 stores across more than 600 towns.
Raymond forayed into the realty sector with the launch of its maiden project, Ten X Habitat, spread across 14 acres, housing around 3,100 residential units.
Frequently Asked Questions
What is the main objective of Raymond's demerger of its real estate business?
The demerger aims to unlock shareholder value and enable the real estate business to operate independently, charting its own growth path.
What is the revenue potential of Raymond Realty's Thane land bank?
The Thane land bank has a potential revenue of over ₹25,000 crore, with five ongoing projects worth ₹9,000 crore and an additional potential to generate over ₹16,000 crore.
How many JDA projects has Raymond Realty launched in the Mumbai Metropolitan Region?
Raymond Realty has launched four JDA projects in the Mumbai Metropolitan Region, with a combined revenue potential of over ₹7,000 crore.
What is the ratio of shares that Raymond shareholders will receive in the new listed real estate company?
Raymond shareholders will receive 1 share of Raymond Realty for every 1 share held in Raymond, as per the scheme of arrangement.
What is Raymond's presence in the market?
Raymond has a strong presence in the market, with over 1,450 stores across more than 600 towns, and a portfolio of leading brands, including 'Raymond Ready to Wear', 'Park Avenue', 'ColorPlus', 'Parx', 'Raymond Made to Measure', and 'Ethnix by Raymond', among others.
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